New options for small business health plans

Three major changes in federal law are rocking the boat on small business health plans. This blog posts summarizes the three most significant changes this past year.


CHANGE #1: No more individual mandate penalty in most states.

WHAT IT MEANS: Without a steep tax penalty for not having a specific type of health insurance, some people are free to consider a wider range of options. Some of these options will save money and expand choices.

WHAT FREEDOM BENEFITS IS DOING: Our financial planning conversations with clients include a wider range of options.


CHANGE #2: Expansion of short term health insurance.

WHAT IT MEANS: This adds a simple, fast, cheap coverage option for healthy people who are in life transitions.

WHAT FREEDOM BENEFITS IS DOING: Building relationships with insurance companies that offer these short term medical insurance products, reviewing specific products, expanding online enrollment


CHANGE #3: Health Reimbursement Arrangements may pay for individual insurance.

WHAT IT MEANS: Small employers are no longer persuaded to offer a group health plan. The same advantages or more

WHAT FREEDOM BENEFITS IS DOING: Emphasizing the HRA’s ability to control health costs for the employer, the ability to increase choice and value to the employee and a new tax advantage. For 2020 employee benefit plans, we include an HRA option at no additional cost in all small business benefit plans and all small business clients where we handle payroll processing.

New cost saving options for some small business health plans.

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