Health Insurance Policy for Small Business Owners - YouTube

Affordable care act basically said, you can't do that anymore. And.

He said, you do that. This could be at what was it?

A hundred dollars per day penalty. It was something outrageous. It was crazy.

It was crazy. You really, if you were wanting to do.

Something like that you just had to include it in their payroll as like taxable

wages to basically just give them a bonus, increase their pace.

Hello, everybody,

are you a small business owner that can't really afford to go out and get their

own health insurance plan? Well,

today we're gonna talk about some alternatives for you guys. Uh, but first, uh,

you know, we do a lot of these small business videos. And if,

if it's something you like, then please, um, uh, click the like button,

subscribe to our channel and hit the notification bell to be alerted when we

have a new video come out, I'm Ray, this is Andrew and Andrew. So,

you know, ever since the affordable care act came out years ago, and it really,

uh, put a pinch on a business, small business owners,

as well as individuals with health insurance. Um, you know,

health insurance has been kind of a hot topic and there's a lot of small

business owners out there that can't just afford to go out and get a plan for

all their employees. Uh, but you know, it's such a, you know,

such a tough market for employees that you really need to be able to offer

something. What are some of the alternatives?

Yeah so the affordable Care act dramatically changed the landscape.

So you once were able to reimburse employees for their own health insurance

plan, and the affordable care act basically said, you can't do that anymore.

He said, you do that. This could be, what was it?

A hundred dollars per day penalty. It was something outrageous. It was crazy.

It was crazy. You really, if you were wanted to do something.

Like that,

you just had to include it in their payroll as like taxable wages to basically

just give them a bonus, increase their pay.

So not ideal because now you're paying payroll tax. But, um, but they,

there are a couple of plans now that have evolved over the last few years that,

um, allow you to help your employees out.

So one is the qualified small employer health reimbursement arrangement.

It's a mouthful, but it's Q S E H R Y R H R a.

USC, H R a Q Sarah. the biz to Sarah.

That's a qualified small employer, health reimbursement arrangement,

which basically says, if you have this plan in place,

you can start to reimburse your employees for their own individual health care

coverage that they have if you're, you know,

if there's two different amounts that you can reimburse them,

if you're self only coverage, it's one amount. If you're a family coverage,

it's a different amount,

but they do have the ability for you to give your employees a direct

reimbursement, there's some caveats to it.

They have to actually have health insurance. Um,

and if they are going through the, uh, the exchange,

the exchange and getting subsidies,

then they have to reduce that subsidy by the amount of their reimbursement.

Which kind of stinks for the employer, because now the employer is paying the,

the government would have been paying.

So there's kind of a double-edged sword there.

You're able to help some employees with their plan,

but then you're also on for some of them that are actually on the marketplace

and receiving subsidies. You're now paying that subsidy for the government.

So that kind of stings.

A little bit. So,

so the good thing is that this plan is QSEHRA has kind of evolved.

So now they have a new version of it. Um, a newer model of it.

And it's called the IC HRA

individual coverage, health reimbursement arrangement. So it's got,

it's a little bit more flexible. So under this plan, um, again,

you can reimburse your employees for their, um, for their health insurance.

There's not as many limitations on the amount that you can reimburse them.

I think they, they look more at it by class.

Like you could set up your own class of it,

like this class of employees gets this amount of money in reimbursement.

So it's a little more flexible there.

Plus you do not have to reduce the subsidy by the amount. I think there's,

there's a, there's some, there's some play there on.

And you'd really have to dig into that a little bit because they,

it has to be considered an affordable for you to not offset the

subsidy. Right. But there is the opportunity there. Yeah.

Yeah. So, so, you know, it started out with the QSC HRA.

Now they've kind of evolved a little bit. The QSC HRA is still there.

It's still a great plan. Great option. And, um, but the,

IC HRA is definitely something that you want to look into as well if you're

looking for a plan just to look at the differences,

the benefits pros and cons and see which one is better for you.

But at the end of the day, this is a,

these are two really great options for people who, you know,

can't afford that one size fits all group health insurance plan.

Let me tell ya. Um, you know, a lot of these small employers,

they go to get a plan in play from an insurance company, uh, a true group plan.

And usually the benefits are terrible and the cost is high. And,

and everybody's like, why don't we want that health insurance?

And then they're forced to take that insurance either from their, like,

if they were an employer's plan, their husbands or wives, employers plan,

they're now forced to get on your plan, which has,

which is potentially worse insurance. Or if, uh,

if you get your own group plan and they are on the marketplace,

they have to leave the marketplace and come onto your plans. So then they,

they're getting worse insurance and having to pay more. So this is really good,

a really good program for small businesses.

It is, it's kind of a different way of thinking too. A lot of people just,

you know, you just, you want that in insurance provided by your employer,

but there's just,

there's a lot of different ways to get good health coverage these days.

One of the really nice things about it is they used to be, uh,

back in the day that you wanted to, like,

people wanted to go with a business that had a group plan,

because let's say they had a pre-existing condition or something like that.

The group plans had to take them in.

They may not have been able to go get their own policy, but the,

but the group plans had to take him in.

So now that with the affordable care act and pre-existing conditions are all

covered,

everybody can go get their own individual policy and you can reimburse that

through this QSC HRA.

So I think there's some really good things there for small business owners to be

able to offer health insurance to potential and current employees. Sure. Yeah.

Awesome. Well, Andrew, I appreciate it again. This is Andrew McMillan,

Ray Halstead with REHCPA.