Press Release: Group Health Insurance Savings for Small Employers Skyrocket With New Enrollment Strategy
MIAMI, April 26, 2016 /PRNewswire/ — The New Group Health Insurance Mandate has forced employers to provide health insurance to their full time employees while paying a minimum of 50% of the plan premium. If employers do not abide to these rules, they could be fined up to $2000 per full time employee. At the moment, there are companies that offer their services to help employers employee’s enroll into health plans at no cost to the employer.
There is one option that is gaining popularity among these services, especially among those who are new to health insurance plans. Employers are heading in this direction due to low participation rates of employees into qualified major medical plans. Through this online enrollment system around in our case study of 100 companies only 30% of employees actually select a major medical health plan and even fewer low income employees do, at 15 to 20%. The online enrollment program helps evaluate employees’ needs and presents employees health care options in a universal understandable manner and employees do so off the clock on their own time saving the employer even more. This option is made available through consulting with BenaVest, a Group Health Insurance Agency.
When it comes to why employees are not enrolling in the major medical plans through the online enrollment platform there are three typical reasons. First is affordability. In most cases the lowest priced plans are $100 a month out of the employees pay, which is too much for many American citizens, given the cost of living and inflation in highly populated employment rich areas of the country. Second, is competition with Obamacare. Most minimum wage employees can get Obamacare for $20 per month, with a zero deductible and $5-$10 copay. Many employees choose Obamacare even after explains to them the subsidies are only available to employees where the employer is not offering affordable coverage and if they receive a subsidy while the employer is offering coverage they could be held responsible for the amount paid by the government (on average about $300.00 annually). During the Obamacare application process, employees are asked if they are eligible to receive health care from their employer. If they answer yes then they are no longer eligible for Subsidy, Tax Credit, otherwise known as Obamacare. The third reason is laziness and irresponsibility. Even with the services offered by benavest.com, employees will still never physically log in and select their plan in a timely manner. Gannon says that when group meetings are held with employees and options are explained clearly and decisively employees elect to still apply for Obamacare incorrectly, so in turn BenaVests has employees declining coverage to sign a waiver, protecting the employer from being sued at a later date.
The Marketplace’s SHOP program is usually inefficient. SHOP is only suitable for companies that have 24 or fewer employees with a low average income (lower income is required to attain the tax credit making these plans affordable). To actually get the tax credit which makes health plans affordable a company would need a staggering 70% participation rate. Usually companies with low income employees have a low participation rate in the major medical plan due to it being unaffordable for the employee. The only way to make SHOP effective is the group or employer pay a higher percentage of the health plan making it more affordable to the employee which to offset the low participation rate”.
The enrollment program is passing along huge savings to employers. On average, they are saving 80% considering the imposed penalties. For example, the last enrollment benavest.com implemented was with a company that had 80 employees only 23 of the 80 employees enrolled into a health plan. If the employer did not offer coverage, the employer could face a fine up to $2000 per full time employee, totaling $160,000. The employer dids decide to offer coverage at $230.00 per month with a $1500 deductible and a $35 copay for the primary Doctor. The employer is mandated to pay 50% of the premium. Given this information, the employer would pay $31,740 for the year instead of $160,000 . This would save the employer $128,260 for that year. In addition, employers will hang on to more valued employees and also recruit more valued employees. There are plenty of benefits to using services such as benavest.com, not just the avoidance of fines.