In a recent survey, Medical Mutual of Ohio determined that 88% of small businesses would join a Chamber of Commerce or belong to a Trade Organization if it would lower the cost of their health insurance premiums. As ACA premium costs continue to increase for small businesses the need for alternative benefit solutions grows in importance.
There are two types of plans in which small businesses can gain control of their health benefit costs for employees. They are small group self-funding and Multiple Employer Welfare Arrangements.
Small Group Self-Funding
Employers with ten employees or more may qualify for a self-funded plan through one or multiple carriers. Self-funded means you pay your groups claims. If those claims are less than anticipated, some plans allow you to have that money back. In addition, stop loss insurance protects you and your business by limiting the maximum amount of money in claims you must pay per person and total as an organization.
Self-funding allows a small group more flexibility in plan design as well as the potential to realize additional cost savings if the group has low claims. Small group self funding generally is determined at the maximum fund rate and groups pay a level premium through the entire year which means that if your group performs well you may receive money back from the carrier or a credit toward your next benefit year.
Multiple Employer Welfare Arrangements (MEWAs)
The passing of ERISA in 1974 allowed for the creation of Multiple Employer Welfare Arrangements (MEWAs). MEWAs allow for a group of businesses to pull together into one large self-funded plan. Each group is medically underwritten but has some additional safety inside a larger pool of employers groups in a MEWA as opposed to being self-funded on their own.
AUI provides access to the following MEWAs:
- COSE Health & Welfare Trust (MMO)
- SOCA MEWA (Anthem)
- Ohio State Medical Association (OSMA) Health Benefits Plan
- Ohio Farm Bureau Health Benefits Plan
AUI specializes in small group employee benefits including Multiple Employer Welfare Arrangements (MEWAs), Small Group ACA, Level-Funded and other Self-Funded Options. It takes time and effort to run a small business AUI make products simpler so you spend less time managing your health insurance plan and more time managing your business. Contact us today to learn more about your options!