Tags: Zane Benefits | Small Business | Health | coverage

Zane Benefits: 3 Ways to Make Small-Business Health Benefits More Affordable

Image: Zane Benefits: 3 Ways to Make Small-Business Health Benefits More Affordable

By    |   Monday, 21 Mar 2016 08:01 AM


Zane Benefits offers three “key opportunities” for small businesses to offer affordable health benefits that also meet the benefit expectations of employees.

The three areas are the affordability of individual products, government subsidies, and the ability to reimburse individual health insurance premiums, according to Zane's Christina Merhar.
 
Affordability of individual products

Employers are taking a second look at individual health insurance policies because since 2014, individual products have improved and generally have lower costs than group policies. (The average group health insurance policy in the U.S. costs $6,251 a year for single coverage. The average individual health insurance policy in the U.S. costs $3,587 a year (43 percent less) for single coverage, or $2,497 a year (60 percent less) for those who qualify for subsidies.)
 
Government Subsidies

Adding to the affordability of individual policies are the government subsidies available with individual health insurance. (In 2015, 85 percent of people with active Marketplace coverage received a subsidy. The average health insurance subsidy was $272 a month, or $3,264 a year. 80 percent of Marketplace shoppers purchased coverage for less than $100 a month, after their subsidy.)

Reimbursing Premiums, Instead of Paying Them


For a small business and its the employer contribution, it may be easier to reimburse premiums, instead of paying them. Rather than purchasing a small group health insurance policy to cover eligible employees and dependents, a more cost-effective approach is to set up a formal healthcare plan to reimburse employees for individual health insurance premiums.

To be sure, small businesses continue to look for ways to slash costs amid increasing higher-price pressures, Reuters reported.

U.S. small business borrowing fell 13 percent in January to the lowest level in more than a year, data released on Tuesday showed, a fresh sign that economic growth could weaken in the coming months.

The Thomson Reuters/PayNet Small Business Lending Index registered 118.2 in January, the lowest level since November 2014. The PayNet index typically corresponds to U.S. gross domestic product growth one or two quarters ahead.

"This is a dramatic form, an extreme form of hunkering down," said Bill Phelan, president of PayNet, noting that January's level of borrowing is not even enough to replace worn-out equipment, let alone buy new machines.

Small business borrowing is a key barometer of growth because little firms tend to do much of the hiring that fuels economic growth.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Personal-Finance
Zane Benefits offers three "key opportunities" for small businesses to offer affordable health benefits that also meet the benefit expectations of employees.
Zane Benefits, Small Business, Health, coverage
392
2016-01-21
Monday, 21 Mar 2016 08:01 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved