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Small Business Employee Benefits and HR Blog

Marketplace Insurance Plans and Their Cost to Your Employees

In today’s world, businesses must be competitive in order to keep the cream of theHow much would marketplace plans cost employees crop happy. With changes to the marketplace and to health insurance laws, it can be difficult to offer your employees an insurance plan that keeps them satisfied with their salary and benefits package.

With the passing of the Affordable Care Act, Americans are required to have health insurance or pay a fine. This opens up options for employees to find their own insurance through the marketplace, that now has higher quality and more affordable coverage. As a small business owner, you have the option to reimburse your employees for their individual health insurance premiums, giving you the added benefit of keeping them happy with your company.

How Much Would Marketplace Insurance Plans Cost Employees?

Statistics suggest that most Americans will pay somewhere between 2 percent and 10 percent of their total income for health insurance, even after receiving some sort of cost assistance from the government. If Americans decide to forego insurance because the costs are too high, they are required to pay a Shared Responsibility Fee for every month they don’t have adequate insurance coverage.

With most insurance plans, what employees pay in their monthly premium is based on how high the deductible is. The higher the deductible, the lower the monthly health care costs, although a higher deductible means a higher initial payment if medical care is required. With a lower deductible, Americans pay more each month but pay less in the event of an emergency.

The costs of health insurance are high, and many Americans are figuring those costs into a budget with little breathing room. Fortunately, employers can set up a healthcare reimbursement plan where employees can be reimbursed tax-free for the money they spend on their health insurance premiums. This means that businesses can offer health benefits that are more affordable by providing a real dollar contribution to employees who buy their own insurance. The employee gets customizable benefits, while the employer is able to offer a benefits package that is unparalleled.

Conclusion

As small businesses and individual Americans alike search for the best answer to the increase in medical care costs, healthcare reimbursement plans offer a solution that works for both entities. 

What questions do you have about marketplace insurance plans? Leave a comment below.