Health Insurance that Pays You Back

Small Business

Health Insurance that Pays You Back

Published on June 02, 2017

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Health Insurance that Pays You Back
 
In 40 states, eHealth can help you get compare health insurance plans for your small business from three or more insurance companies. In many states we can help you compare plans from as many as 7 or 8 different insurers.
 
In some states, partially self-funded health insurance plans may be an option for you.
 
What are partially self-funded health insurance plans?
They are sometimes also referred to as level-funded plans, and they have a few interesting wrinkles that make them different than standard health insurance for a small business.
 
Here’s a short list of differences:

  • They can be medically underwritten – For groups with less than 50 employees, you generally have the option with these plans to get lower rates based on the health of your group.
  • They’re often less expensive – These plans can typically cost 25-30 percent less than standard small group plans, if you have a healthier group.
  • They include a reserve account for medical bills – With these plans a portion of your monthly premium goes into a reserve account, which the insurance company uses to pay for medical care if you or any of your employees or dependents has a covered medical claim. Once your reserve account is empty, the insurance company takes over and pays the remaining covered claims.
  • You keep unused funds from your reserve account – If you have money left over in your reserve account at the end of the year, you generally get to keep it. You can save the money, you can give it back to employees, or you can use it to pay for health insurance the following year.

 
Of course, there’s no guarantee that you’ll save money with a partially self-funded plan – but there’s the potential to do so. Partially self-funded plans are generally better suited to employers with employees who don’t see the doctor very often.
 
Here’s a breakdown of the differences between standard and partially self-funded small business health insurance plans:


Why work with eHealth to find a health plan?

 
Here is a list of the services eHealth provides to its small business clients:

    • Best price: Since rates are filed with and regulated by government regulators, you can’t find the same plans for a lower price anywhere else, even if you buy directly from the insurance company instead of through eHealth.
    • Better selection: In most states, eHealth works with at least four different health insurance companies, so we can get you quotes from multiple companies all at once. In contrast, if you work directly with an insurance company, then that company typically only gives quotes for its own plans, and not for the plans of its competitors.
    • Hassle free: We make the paperwork easier for you; we work with you to make sure your applications are filled out correctly, and we’ll manage the process with the insurance company to get your team covered as quickly as possible.
    • Lifetime support: Once you buy through eHealth, we’re there for you. If you ever have problems working with the insurance company, if you’re unhappy with your service, or just want to shop for something better, our team at eHealth will always be here to help.

 
 
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Standard Small Group Insurance Benefits Partially-Self-Funded Insurance
Yes Qualifies as major medical insurance and protects you from any possible tax penalties for not having or providing health insurance Yes
Yes Legally must cover all essential health benefits Yes
Yes Premiums are typically tax deductible Yes
No Monthly costs can be based on the health of your group Yes
No A portion of your monthly premiums are saved in a reserve account Yes
NA Money in your reserve account is used to pay medical claims Yes
NA You can get a refund on unused funds in your reserve account at the end of the year Yes

 

We’ll let you know when we publish anything new.