Health Insurance Done Right.
We offer Four strategies for group health insurance:
- Individual Plans - AIMS Health Insurance Exchange
- Health Reimbursement Plans - Section 105
- AIMS Smart Health Strategy - ERISA Qualified Plans
- Traditional Group Medical
+ 1. HEALTH INDIVIDUAL PLANS - AIMS HEALTH INSURANCE EXCHANGE
To provide individual health insurance options consistent and compliant with the US Affordable Care Act, AIMS established the AIMS Health Insurance Exchange in partnership with HealthPlan Services. The Exchange allows individuals to directly access approved health insurance options available in the Health Insurance Marketplace to find the best plans at the best rates for each person or family’s specific situations and needs. Click below to explore the individual health insurance plans available in your area.
Get the best individual health insurance plans at the best rates.
+ 2. Health Reimbursement Plans - Section 105
A new approach for small employers (groups of less than 50 full time employees) to continue to offer a health plan is unfolding in 2015. These plans are established under Section 105 of the Internal Revenue Code that has been in place for more than 50 years. However, recent IRS clarifications due to the Affordable Care Act (ACA) are making these plans a more viable alternative to the traditional group health coverage offered by insurance carriers on an employer sponsored basis.
This plan, known as a defined contribution plan, has obvious appeal. It largely frees the employer from the headaches of arranging group health coverage by reimbursing employees for individual and family insurance they can purchase on their own. At the same time, it allows the employer to help its employees find affordable, often cheaper options on the individual market through enrollment centers. Most importantly, it promises that the contribution the employer makes to its employees’ coverage is tax-free to the employee and excluded from payroll taxes to the employer.
Before 2015, most employers who wanted to provide their employees with health insurance had little choice but to select and manage a company sponsored group health plan. Now, under the ACA individual plans are available with guaranteed issuance, no pre-existing penalty, choice, portability and often tax credits, which are making these individual health plans more attractive to employees than employer group plans.
So, the question of whether to continue offering health insurance on a group basis has intensified, especially for small business owners.
The major conflict between group plans and individual plans has been that group plans are paid with employer’s pre-tax dollars and individual plans are paid with employee’s after-tax dollars. However, recently published IRS guidelines on the Section 105 Code clarifies that, as long as the plan is arranged within the rules, employer’s premium reimbursements to employees are to be tax deductible to the employer and non-taxable to the employee. Eureka!
Further, small business owners are normally required to contribute a minimum percentage of the premium (typically 50-75%) under group plans. And, group coverage may be rescinded if a required number of employees do not enroll in a group plan (typically 75% of employees). These are not factors under Section 105 plans.
Additionally, this Defined Contribution arrangement allows the employer to offer health benefits without absorbing the premium increases and administrative costs (renewals, COBRA compliance, liability, etc.) of sponsoring a traditional group plan.
Over 5,000 small business employers have already adopted Section 105 plans. Due to the advantages of this Defined Contribution healthcare arrangement, it has been estimated that 60 percent of small business employers will eliminate traditional employer-sponsored group plans over the next few years.
+ 3. AIMS SMART HEALTH STRATEGY
The AIMS Smart Health Strategy gives small employers the same plan design and financing advantages enjoyed by employers with hundreds or thousands of employees. It enables the employer to reduce cost today, to keep costs below trend from year to year, and to deliver an excellent plan to employees.
Most importantly, the Strategy turns the tables on traditional health insurers by providing plan usage data that has been commonly available to large employers but not to small employers. AIMS and the employer can use the data to fine tune plans, use available dollars most efficiently, avoid waste, and negotiate lower administrative costs.
Without the Strategy, small and mid-size employers are in a take-it-or-leave-it position with little or no control over benefits and costs:
- Little or no negotiating leverage
- Saddled with expensive, inefficient, and ineffective state-mandated coverages
- Forced into ObamaCare mandates
- Annual unexplained trend cost increases
- Forced to negotiate without any data
- Forced to cut benefits and/or increase employee contributions to minimize cost increases.
The result is:
- Ever-increasing costs, now expected at an average 40% for 2014 due to ObamaCare rules for traditional plans
- Employer frustration
- Employee dissatisfaction
- Frequent plan and insurer changes
- Lots of time wasted seeking bids that don't solve the problem
The Strategy delivers to YOU the same benefits that large employers have enjoyed for decades:
- Negotiate on a level playing field
- Better plan design at lower cost
- Change out individual plan elements
- Without having to change the entire plan
- Multiple plan designs to satisfy nearly all conceivable needs
- Multiple provider networks
- Return premiums when claims are below the level funded
- Usage data to use for tweaking plan design and predicting future costs
- Guaranteed maximum cost
- Avoidance of unexplained trend increases
- Wellness programs tailored to the specific groups needs
- A healthier, happier work force
- Long-term cost stability
- Avoidance of most of the cost increases due to ObamaCare
+ 4. TRADITIONAL GROUP MEDICAL
In today’s rapidly changing market with constantly evolving rules and regulations, small to mid-sized employers are being forced to make uncomfortable decisions that significantly impact what is often considered their most valued assets: their employees.
Employees often have little input on the health insurance program their employers provide. Employers also have fewer and fewer options to consider that seem to just keep costing more and more. And in the Age of the PPACA, both the employer and employees are being compelled by their government to offer and/or purchase health insurance that complies with the government’s mandates. Even though there are alternative options being developed, traditional employer sponsored group insurance plans must be considered as it is often still the best option available for many.
Just like we do in our “strategic risk management first” approach in our commercial insurance business, we also look at all the options available to the employer before just considering traditional insurance. But, we do offer a complete array of traditional insurance products and services to meet the needs of our clients to accompany our alternatives.
explore which option is right for your company.
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