The passing of Health Reform
in the United States in 2010 marks the beginning of the end for defined
benefit group health plans for small businesses.
Let's look back for a moment - by the mid 1980s the
majority of small business pension plans in the United States were 401k,
or defined contribution plans. They were attractive because they gave more
flexibility to employees and were less costly to employers.
Just as
retirement fund managers switched from group to personal (401k and IRA)
plans, employers should now prepare employees for personal policy
funding through Defined Contribution Employee Health Plans .
The following facts should make group health plans for small businesses obsolete in the very near future:
Employers can now contribute to their employees individual health insurance costs.
Employer defined contributions are 100% deductible to the company as a business expense.
Employer contributions are 100% tax-free to employees.
Individual health insurance plans now cost considerably less than group plans.
Employers can contribute different amounts to different employees.
Employers, not insurance companies, define eligibility in a defined contribution plan.
Employers who implement a defined contribution plan are freed from annual rate increases.
Small
businesses need to provide good benefits to attract and retain
employees but for years have been wrestling with ever increasing health
insurance costs and decreasing benefit levels.
"Dumping" the old group
health insurance concept and implementing defined contribution health
benefit plans instead not only reduces and controls business costs but
also provides better benefits.
A revolution, indeed! HBUS Inc has been paving the way for the past 5 years in this area. We have done the research and can offer businesses a permanent benefits solution that won't break the bank. In fact, it will SAVE the business thousands. We are seeing it everyday. Call HBUS Inc today to learn more.
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