As an agent you may be approached by a customer or a friend who owns a small
business asking if you can help them acquire group health insurance. Unlike individual
plans, the small group insurance market requires more effort and commissions may not
be worth the effort, but agents want to help clients, so they make the effort regardless of
commissions.
Small groups with four lives or less have certain requirements and unique features:
With most insurers, all members of the group must participate
A group cannot consist of just two spouses
The paperwork is often more complicated than individual health insurance.
Commissions may be small or non-existent
Premiums can be quite high depending on the zip code and ages of the employees.
These groups have a better alternative: an ICHRA.
An ICHRA (Individual Coverage Health Reimbursement Arrangement), is a new type of health reimbursement arrangement available as of 2020. In an ICHRA, employees pay for health insurance that they purchase on their own, and employers reimburse them for some or all of the premiums. This program is available for any size group of two or more lives.
In essence, the employer provides a “defined benefit”, sometimes referred to as a “stipend” to
their employees. The employer determines a certain amount of pre-tax dollars for the employee to use to purchase an individual health insurance plan from the marketplace.
The employee uses the money to buy their plan, but forfeits the opportunity to receive any government subsidies they would qualify for were they to buy a plan on their own.
An ICHRA may be the perfect alternative to assist employees while also giving the employer
peace of mind that something is available.
O’Neill Marketing has teamed up with a company called Savvy to help you navigate the process.
To learn more about this alternative sales method visit www.gosavvy.com or call 813-489-4156