An attractive alternative
for insurance
If you're one of the millions of Americans unhappy with your choices and prices this year under Obamacare, there is a possible alternative that could give you the same kind of top-flight health-care plan offered by many businesses to their employees, with a wide choice of physicians and hospitals and excellent prescription benefits.
That's because of a little-known quirk in the Affordable Care Act that allows small businesses a chance to offer employees — even if only one employee enrolls — a job-based plan that is equivalent to the best deals offered by major insurers.
This special enrollment period runs through Dec. 15 for coverage to start on Jan. 1. All insurance companies offering coverage on or off the marketplace agree to accept all small businesses that apply for coverage during this special enrollment period. That means major insurers like Blue Cross Blue Shield and Humana, among others, must accept even small businesses that might have just one employee.
In many cases, the small business plans offer better benefits and lower costs than plans available to individuals on the Obamacare exchanges, especially now that many insurers have dropped out of the state exchanges or raised prices and limited participating providers.
The concept is attractive to business owners because they do not have to contribute to the cost of employees' health care. Instead, the employee pays the premiums on a pre-tax basis, lowering the true cost of paying for this health-care policy. And because the premium cost is an employee deduction, the business owner saves on payroll taxes.
Best of all, because this small business incentive program is part of the Affordable Care Act, there is no impact on cost or acceptance because an employee may have pre-existing medical conditions.
Before you think about “creating” a small business this month to take advantage of this offer, be aware that the government will be checking that the business is truly in existence.
The plan chosen by a given business may not be attractive to all its employees. For example, if an employee with a low income decides that the Obamacare exchange plans, including subsidies, will cost him or her less than the company's plan, he or she can buy one of those exchange plans. Remaining employees, even if only one, can get the small-business plan.
How do you find these small business plans? You'll likely have to go through an insurance broker.
Allen Wishner of Flexible Benefit Service Corp. (FlexibleBenefit.com) works with thousands of brokers helping their small business clients set up health insurance plans. And there's a year-end crunch, Wishner says, because business owners are suddenly facing unacceptable choices on the insurance exchanges.
One of those brokers, The Health Insurance Shoppe (TheHealthInsuranceShoppe.com), located in Chicago, has registered insurance agents that will help business owners find a plan and identify employees that might be better off with the subsidized exchange plans. Business owners know that they might be the only one covered under the plan and still qualify for the small business deal created by the Affordable Care Act.
Because each state offers different exchange plans, you must consult with a health insurance broker in your state to find out your options. But hurry. The Dec. 15 deadline is looming. It takes some time to process your application. And that's The Savage Truth.
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