#140: How to Provide Health Benefits to Your Employees Without Breaking the Bank
Sep 18, 2023
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Learn how to provide health benefits to your employees without breaking the bank. The podcast discusses the incentives misalignment in the health insurance system, alternative plans offered by the Affordable Care Act, saving money through health benefit plans, and the need for alternative plans when facing rate increases. The importance of health benefits as a recruitment and retention tool for small businesses is highlighted.
Remodel Health helps small businesses find better rates on health insurance by pooling insurance packages with other businesses.
Small businesses can offer more affordable healthcare options to their employees by embracing changes brought by the Affordable Care Act.
Deep dives
Finding the Right Health Insurance for Your Small Business
As your small business grows, providing health insurance for your team becomes crucial for recruiting and retention. However, navigating the complex healthcare industry and understanding costs and coverage can be challenging. In this episode, Austin Lehman, CEO of Remodel Health, discusses how their platform helps small businesses find better rates by pooling insurance packages with other businesses. By offering clarity and alternative options, businesses can save significant amounts on health insurance costs. Lehman also emphasizes the importance of working with innovative brokers who stay up-to-date with healthcare trends and legislative changes. Offering competitive health insurance allows small businesses to attract and retain top talent and compete with larger corporations.
The Role of Health Insurance Brokers and the Incentives Involved
Health insurance brokers serve as intermediaries between small businesses, insurance carriers, and hospitals. However, the incentives between these organizations aren't always aligned with the small business owner's best interests. Insurance carriers often incentivize brokers to sell specific insurance packages that yield higher kickbacks, leading to businesses paying more than necessary for coverage. While some brokers may be unaware of better alternatives, others consciously choose not to explore new options due to the impact on their resources. By partnering with innovative brokers like Remodel Health, small businesses can break free from traditional plans and find more cost-effective solutions.
The Impact of the Affordable Care Act and Pre-Tax Individual Plans
The Affordable Care Act (ACA) brought significant changes to the healthcare industry, including the ability to offer pre-tax individual plans. Prior to the ACA, group plans dominated the market, and individual plans were less tax-efficient. However, since 2020, individual plans can be offered on a pre-tax basis similar to group plans. Remodel Health helps small businesses leverage this opportunity by offering employees funds to purchase individual plans. These funds are tax-exempt for employees, providing a competitive benefits package for recruitment and retention. By embracing these changes, small businesses can offer more affordable healthcare options to their employees.
Choosing the Right Health Insurance Plans for Your Small Business
When selecting health insurance plans for your small business, it's crucial to consider the unique needs of your employees. Remodel Health recommends starting with an initial amount, such as $100 per month per employee, to get started with coverage. Employees can then use this allotted amount to select a plan that best fits their needs and preferences. As the business grows, they can transition to a percentage-based approach, covering a certain percentage of the employee's insurance costs. By offering competitive benefits and empowering employees to choose plans that suit them, small businesses can boost morale, attract top talent, and provide valuable healthcare coverage.
As your business grows and you begin to hire more employees, this inevitable question comes up: “do you provide healthcare benefits?” And how you answer that question could be the difference between hiring top talent and settling for a less qualified candidate. But where in the world do you start when most healthcare packages seem too expensive and the insurance industry is so confusing?
In today’s episode, Donald Miller talks with Austin Lehman, CEO of Remodel Health, a company revolutionizing the way health benefits are delivered to employees. Austin breaks down the complex topic of employer-sponsored health insurance and shows you how you can get started for only $125/month per employee. Tune in now to learn how you can take great care of your employees and increase that care as your business (and team) grows!
Go to TruthInHealthInsurance.com to get clarity around the health insurance options you could be offering to your team. You'll also get free access to ReModel's essential guide - 6 Questions to Ask Your Health Insurance Broker.
