Open enrollment is just around the corner. There are many ways you can help your company operate more strategically and efficiently by opting for level-funded health plans. Not only does a level-funded health plan benefit employees, but you might find that there are plenty of ways these plans help you out as well.

Health care costs have been trending upward for a number of years. Employers in the U.S. expect the cost for medical plans per employee to raise 5.6% on average in 2023, according to Mercer, a human resources consulting firm. This has led many employers to search for affordable insurance options to lower expenses without sacrificing quality for their employees.
 
With traditional group health insurance plans, employers use their bargaining power to purchase coverage from insurance companies at a lower rate than individuals usually pay, and they cover a majority of employees’ premiums. The insurance companies pay employees’ claims using the premiums paid by the employer and keeping all unused premiums for themselves.
 
Level-funded group health plans allow employers to pay for claims themselves, saving money on profits that typically go to insurance companies and are protected by stop-loss insurance that caps their total claims exposure. These plans have become increasingly popular among small employers because they set level monthly payments, the same as a tradition insurance plan. These payments go towards covering the estimated costs of expected claims, administrative costs and stop-loss insurance. But with a level-funded plan, employers can actually see money returned when their group has a healthy, low-cost year.

Telehealth, also called telemedicine, allows you to receive health care without an in-person visit to a provider by using computer, tablet or smartphone.
 
Telehealth technically started in the 1940s in Pennsylvania when providers realized they could send radiology images over the phone lines between two townships. In the 1950s, a Canadian doctor expanded on the concept and constructed a teleradiology system that was used in and around Montreal. And in 1967, the University of Miami School of Medicine partnered with a local fire department to transmit electrocardiographic rhythms over radio to Jackson Memorial Hospital in rescue situations.

It’s no wonder small businesses are confused when they are told they need to file Form 5500 with the Internal Revenue Service (IRS) and pay PCORI fees. For instance, if you look up 5500 filing requirements on the Internet, most sites say something like, “Form 5500 is required on behalf of any welfare benefit plan that has 100 or more participants as of the beginning of the plan year or is funded through a trust, regardless of participant count.”

Clear as mud to the average employer, right? WRONG! Let’s break it down.

Direct Primary Care (DPC) is capturing the attention of employers who want to offer better health care coverage to their employees. With DPC, a patient can form a one-on-one relationship with their doctor and have 24/7 access to medical care. DPC has been shown to help provide superior healthcare for individuals, lowering their overall healthcare costs and improving outcomes.

The challenge for employers who want to offer DPC – how to ensure employees are covered for both primary care health services and care the DPC doctor can’t provide.

Article reposted with permission from BenefitsPro. Written by Kelly Smith, Senior Vice President at MVP Health Care.

​Brokers are experiencing an increase in demand for level-funded plans, which are an exciting offering providing predictability, funding diversity and innovation to their portfolio.

The pandemic has had an enormous impact on every aspect of our lives, including the way employees view employee benefits. Employers are having to rethink what kind of perks, benefits and incentives will keep workers engaged and offer a competitive advantage in a post-pandemic world. 

Despite the numerous changes to the Affordable Care Act (ACA), applicable large employers (ALE) must still provide group health benefits to their employees. These benefits must meet at least the minimum standard as set by the federal government or the employer will be required to pay a penalty.

The concept of a Health Savings Accounts (HSA) was established by Congress in 2003 to allow individuals and families to save for and pay for medical expenses with tax preferred money.

The tax preferences are significant. In fact, HSAs are “triple tax” preferred, which means:

1. Money you invest into an account is tax deductible.
2. Money that is in your HSA may be invested and the income from that investment is tax free.
3. Money that is spent from your HSA on qualified medical expenses also is tax free.
   

Would you agree that your employees are the best asset for your small business? Hopefully you answered with a resounding YES! It’s important for employers to encourage healthy habits at the office that lead to good heart health.
 
Building a healthy workplace and workforce has a number of benefits such as: increased productivity, less absenteeism and ample health-spend savings for both employees and employers. Some health plans – like Allied National’s Freedom Plans – even offer a refund at the end of a healthy plan year. 
 
February is American Heart Month and so we came up with five easy ways to keep your employees happy and heart healthy.

Download our infographic at the end of this blog.