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Public or Private Exchange for Small Employers
Employers have tough decisions with health care reform. What they decide to do will impact their employees in a negative or positive way. Some employers are seeing high double-digit increases with traditional group sponsored coverage.
Buzz words keep going around about these health insurance exchanges. This has made it confusing for some employers.
Open enrollment is coming for the nation, starting on November 15th. Some employers are faced with a decision of continuing coverage the old way or work with the public or a private exchange. They could also continue coverage with their existing plan. Having the right information could help make the big decision.
“The public exchange takes you through a series of additional questions to determine if you qualify for a tax credit. Some people call this “Obamacare”
Once the tax credit has been determined, you can select a plan available to you. The premium is reduced by the exact amount of the tax credit you qualify for, or the amount of the credit selected during enrollment. “There is no ‘discount’
“A private exchange allows the employer to have some more control, especially if they are contributing dollars towards health insurance premiums. This could be insurance company selections, voluntary benefit offerings, contribution amount, employer reports, etc.”, says Zemar.
Each private exchange will vary with their offerings. It could be limited to health insurance only, and only one insurance company. Some may include voluntary benefits, like dental and vision.
Both types of exchanges have their advantages. The employer needs to evaluate both options before proceeding.
Butch Zemar is the President at Elite Benefits of America. Elite Benefits of America is an Employee Benefits Consulting firm that works with the public and private exchanges. Their insurance agents assists individuals, families and small businesses find the best coverage to meet their needs. For more information, please contact them at 888-535-3006 or EliteBenefits.net