2014 Pay or Play
There are Other Options
When 2014 arrives, in accordance with Health Care Reform, most employers will be required to offer health insurance coverage to its employees or pay a fee to help finance subsidies for individuals without access to affordable coverage. The law is known as 'Pay or Play'.
A recent McKinsey study predicted that approximately 30 percent of U.S. employers would "definitely or probably" stop offering health insurance to its employees in 2014 when there will be state health insurance exchanges. It also predicted that upward of 50 to 60 percent of these companies would be finding other alternatives to saving their company on their overall benefit costs.
So what are some other options to help you save on increasing health costs?
- Invest in Wellness Programs - Well1st, an affiliate of CBP, offers The Year Round Wellness Program. It is carefully designed to create awareness, educate, and engage your employees in activities throughout the year that lead to reduced risks and better health. This comprehensive solution includes all the activities, communication materials, tools and support you need to have a high-quality, effective wellness program that is normally available only to employers with thousands of employees.
- Offer Consumer-Directed Health Care - High-deductible plans can help employers contain costs through lower health plan premiums and reduced payroll taxes.
- Conduct Dependent Eligibility Audits - Make sure that you are removing individuals from your health plan that are not eligible to be receiving benefits sponsored by your company. Often there is someone on your plan costing you thousands in premium that you are unaware of.
- Use a Defined Contribution Model - This model allows employers to contribute a fixed dollar amount toward their employee's healthcare, an alternative to sharing a percentage of the costs. This model will help you track the amount being spent on benefits and simplifying your budget.
- Self-Insuring- Self insured or partially self insured plans have helped employers save large amount off of their premiums. This option can be successful for both large and small groups.
Learn more about the 2014 Play or Play regulation