Changes
Jump to navigation
Jump to search
→Strategies small businesses use to save on healthcare
**"Reducing your cost over time from one year to the next is probably an unrealistic standard. A company that is keeping its benefits costs in line with its compensation costs is probably doing exactly right." -Alan Cohen, chief strategy officer and co-founder of Liazon
==Strategies small businesses use to save on healthcare==
[http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]
===Negotiate private plans===
*Some private insurance premiums are negotiable, especially in the 50-99 employee space. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]
===SHOP===
*As of Nov. 15, small businesses with 50 or fewer "full-time equivalent employees" under the Affordable Care Act's formula can now turn to the Small Business Health Options (SHOP) exchange. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]*SHOP is "essentially a federal or state-run supermarket—or marketplace—where businesses can shop for small-business plans" according to Sally Poblete. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]*With SHOP, small businesses can define the amount of money they wants to contribute to premiums and allow employees to select from the health and dental plans, depending on employees' needs. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]*Some businesses qualify for tax credits when they purchase insurance through SHOP. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]*Coverage for an individual plan sold through the exchanges can be customized to the individual - they will not necessarily get inferior coverageby switching to SHOP. [http://www.cnbc.com/2015/01/08/5-smart-ways-small-firms-can-slash-health-care-costs.html (CNBC)]===Convert from group to individual plans/ HSA to HRA accounts===*Businesses who offer money to buy individual plans vs covering group plans often fare better*Alternatively, employers set up health reimbursement accounts (HRA). The advantage of an HRA over a health savings account (HSA) is that the plan can be structured so that if an employee does not use the money in an HRA, the money will still belong to the company.===Direct primary care===*Direct primary care works by charging users a monthly fee for unrestricted access to their doctor, instead of billing patients' insurance*Costs ~$80/month and ~$1000/year for individuals and some practices offer discounts to employers*'''"Direct primary care, coupled with a high-deductible health insurance plan, can oftentimes be an outstanding and relatively affordable solution for entrepreneurs and small business."'''*Can often save 12 percent to 15 percent over what a firm would spend for traditional health insurance.
=Changing nature of raising capital=
