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Small Business Employee Benefits and HR Blog

How to Educate Employees About Individual Health Insurance Reimbursement

You might be looking at alternatives to group health insurance for your small business and individual health insurance reimbursement is at the top of your list. If you’ve decided that it is best for you and your small business, here is how you can educate employees about individual health insurance reimbursement.How to Educate Employees About Individual Health Insurance Reimbursement

What is Individual Health Insurance Reimbursement?

The basic concept with individual health insurance reimbursement is just that - set up a formal health benefit program to reimburse employees for their individually-purchased health insurance premiums

What is individual health insurance? An individual or family health insurance policy is a policy purchased from an insurance company covering you and selected family members. Individual health insurance is also known by the terms: individual policy, family policy, individual and family policy, and personal policy. These all mean the same thing—a policy purchased by a consumer directly from an insurance company covering an individual or a family. It works just like car insurance.

As the employer, you set a monthly allowance for your employees to use towards their health insurance premiums.

What Methods Can You Use to Educate Employees?

Your understanding of individual health insurance will help you think of ideas about how to educate your employees. This will help you educate staff about how individual health insurance works, and its benefits.

Having said that, here are a few ways you can use to educate your employees on individual health insurance:

  • All-staff presentation or training

  • One-on-one meetings with HR and/or the company’s health insurance broker

  • Brochures or handouts

  • Emails

  • Webinars or podcasts

  • Benefit packets (aka the “Welcome Kit” or “Enrollment Packet”)

  • Incentives tied to learning activities

Explain How Individual Health Insurance Reimbursement Helps Them

Once you have chosen the method(s) with which you will educate your employees, you’ll need to keep in the front of your mind how individual health insurance will help them. As previously mentioned, your thorough understanding will play a large part in this.

If you’re wondering how to understand individual health insurance reimbursement better, click here for a simple breakdown.

Give your employees clear examples that show them in an understandable manner how they will save money and be able to choose their own plans. Here are examples of important topics to cover when explaining how individual health insurance helps them:

  • Choice: You choose how to spend your healthcare allowance. For example, you choose the health plan that best fits your family’s needs. This includes the insurance company, the coverage, and the doctors.

  • Flexibility: You can keep the plan as long as you want. Or, plans can be modified to meet changing family medical needs. You are not tied in to one specific plan that the company chooses.

  • Lower health insurance costs (value!): It’s important to our company that you receive the best health insurance, at the lowest cost. On average, individual health plans cost less than traditional employer plans for the same (or better) coverage. And, there are new premium tax credits are available to many families through the Health Insurance Marketplaces. By not offering a traditional employer plan, we are giving you and your family access to the premium tax credits.

Tell Them How it Works

Lastly, show your employees how individual health insurance reimbursement works. The more simply you explain it, the easier it will be for them to understand. For example:

  • Choose an individual health plan. Select and purchase a health plan with your own money. Contact information for a health insurance broker will be provided to help you understand plan options and enroll in a plan. You can also see options at HealthCare.gov.

  • Submit a reimbursement request. Log in to your online participant account to request reimbursement, or submit a paper form via fax or mail. You’ll be given a Welcome Letter with your online login information.

  • Receive reimbursement. Our provider (Ex: ZaneHealth) will review and approve all reimbursement requests. Then, our company is notified to reimburse you for your plan costs, up to the amount available to you. You’ll receive reimbursements directly from our company by [paycheck, direct deposit, or check].

Questions or ideas about how to educate employees about individual health insurance reimbursement? Leave a comment below.

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