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Your three options for health benefits in 2023 | healthcare benefits for small business

Name: Your three options for health benefits in 2023 | healthcare benefits for small business
Uploaded: 2022-11-01T13:05:39+00:00
Duration: 57 s
Channel: Matt Vaadi
Description: In this concise advisory video, Matt Vaadi outlines the three primary strategies small‑business employers can pursue during the 2023 health‑benefits…

1 Nov 2022 · 1 min

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In this concise advisory video, Matt Vaadi outlines the three primary strategies small‑business employers can pursue during the 2023 health‑benefits renewal season. First, he explains how employers can forgo a traditional group plan and instead provide employees with individually funded HRAs—either an ICHRA or QSEHRA—allowing pretax dollars to be used for personal insurance or health expenses. Second, he describes the conventional route of renewing through a broker, noting that firms with fewer than 50 employees face age‑banded premium structures that can lead to discrimination concerns and budgeting challenges. Third, he presents the option of joining a Professional Employer Organization (PEO), which aggregates multiple small businesses to leverage economies of scale for lower insurance costs and richer benefit packages. Vaadi emphasizes that while other alternatives exist, these three should be carefully evaluated before year‑end decisions are made.

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All right. So we're heading into healthcare benefits renewal season. The way I see it, you've got 3 great options as an employer. First and foremost, offer no group plan and offer an ICHRA or a QSEHRA, which allows you to individually fund HRAs for your employees so they can use those pretax dollars to do what they want related to their insurance or healthcare needs. Second, you can go to your broker again, get access to the same plans, the same renewals that everybody has on the open market. If you've got less than 50 employees, just be aware that there's age-banded rates and you may discriminate against some folks, or, and it's really hard to budget for. And your third option is to use a PEO, which is a group that lumps a bunch of small businesses together to buy down the cost of health insurance and also create better benefits packages with their economies of scale. There are other options, but these are your three primary options. Make sure you look thoroughly at each before year-end.