Small Business health insurance plans
Written by: President and co-founder of Freedom Healthworks, Adam Habig
Small business health insurance plans will have new, cost-saving options. These include alternatives available only to the largest corporations until now.
In response to President Trump’s order last fall, the Department of Labor issued final rules making it easier for unrelated small businesses to join together to achieve the size and scale necessary to form “association health plans.”
Like the employer-sponsored plans overwhelmingly utilized by large companies, association plans empower small businesses to customize the coverage inside the plan to meet their specific needs. This means cutting unwanted coverages and costs, rather than defaulting to the “one-size-fits-all” Obamacare mandates. Association plans also get better pricing from insurance carriers, and with their larger size, they can self-insure like nearly all large businesses to further decrease premiums. They offer flexibility to integrate attractive options like direct primary care to enhance employee benefits while saving money. Direct primary care offers a concierge-style personal physician to every employee, eliminating unpopular barriers like co-pays and deductibles, to keep people healthier by preventing illness rather than treating it.
By offering small businesses an option where their health insurance costs decrease to match the financial risk of an association rather than the “community,” critics dislike that association plans will enable many Americans to escape the expensive public exchanges. However, small businesses deserve the same benefit options that their larger competitors enjoy. Thanks to the administration’s recent action, they’re finally getting them.
In addition to small businesses having less expensive options when purchasing health insurance, freelancers and individual Americans will too.
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