New Rules for Group Health Insurance
This information is important to both employers and employees!
For as long as we can remember Individual Health Insurance policies have been readily available in the Kansas City Metro area. Because of many factors that is no longer the case. Now there are only a very few plans available and (in our opinion) they are very expensive, have minimal coverage, and have a very limited provider network.
So, what’s the solution?
This is a major national problem and we don’t claim to be able to help everyone. We know that most Americans get their health insurance through their employer. If your employer does not offer group health insurance, and you, the individual need coverage we may be able to help.
Here’s a little background…..
In the past, in order to sponsor a Group Health Insurance plan, the employer needed most employees to participate and was required to pay a significant portion of the employee’s premium. That has changed! We can now offer Group Health Insurance plans to employers with no participation or contribution requirements.
What does this mean for employees?
As stated earlier, in our opinion there are no good options for people wanting to purchase an individual health insurance plan in the KC Metro area. If your employer offers health insurance count your lucky stars. If your employer does not, maybe we can help. Here’s how: We can set up an employer sponsored Group Health Insurance plan with the premiums paid by the employees that want and need the coverage. The premiums must be payroll deducted by the employer who then pays the insurance company. If we install a Section 125* plan, the premiums can be paid with pre-tax dollars which saves most employee’s money.
What does this mean for employers?
Most employers want to offer Group Health Insurance, but sometimes it’s just not affordable. Because we now offer plans with no participation or contribution requirements, employers can offer a group plan at no cost. All that is required is to help us complete the enrollment paperwork, payroll deduct the employee’s premium each pay period, and pay the bill. If the employer chooses to install a Section 125* plan the employer may not be required to pay Payroll Tax (FICA & Medicare Taxes) on the payroll deducted premium. Basically, the employer can provide a valuable benefit to the employees and avoid paying a few tax dollars.
Where do I begin?
If you’re the employee in need of health insurance please show this to your employer, or just give us a call. If you’re an employer we’d be happy to speak with you on the phone or in person. Just let us know and we’ll do whatever is convenient for you.
* Section 125 is part of the IRS Code that allows employees to convert a taxable cash benefit (salary) into non-taxable benefits. Under a Section 125 program you may choose to pay for qualified benefit premiums before any taxes are deducted from employee paychecks.