Individual Plans vs Group Plans for Groups is IMHO pretty much a dead issue under Health Care Reform. Near as we can tell it’s not allowed.
See our other pages on this topic:
We have this page still here as we don’t like to destroy what took hours to build when we were originally asked this question. Who knows, it might be relevant in the future, considering that ACA has been declared unconstitutional – Texas v USA or what political change may come about. I thought COBRA would not be relevant with guaranteed issue no pre x individual plans!
Reasons to have employees get coverage on their own
Free Individual & Family Quotes
Lower Business Expenses – No Group Health Premiums
Less work for the HR Department. Employees get coverage on their own, you don’t have to get involved.
Guaranteed Issue – No Pre X
Mandate to have coverage on their own or thru Employer or pay Tax, which is Zero right now of income…
Premiums deductible if over 7 or 10% of Income
Tax Credit (subsidy) for individuals making between 100 and 400% of Federal Poverty Level
Part D Rx & B Doctor Visits
We don't always have time to update this chart.
Just click on chart or Medicare Costs Publication #11579 for the latest from Medicare.
Higher Income Surcharge
Part B Doctor Visits
Higher Income Surcharge
Misc. Resources & Information
Congressional Budget Office Report Page 19 – 22
Health Savings Accounts (HSA) where one can get a policy with a high deductible, and lower premium. Then fund a special account like an IRA that is tax advantaged to pay expenses not covered by Insurance
Quality Dividend CalculatorTM 2011, gives you a simple way to estimate how your choice of health plan will affect the productivity and absenteeism of your workforce.
When employees get higher quality care, they stay healthier, absenteeism drops, and productivity improves
12.2012 only 3% of EmployER’s will drop coverage
Myth – Employers will stop covering employees
Advantages – To get or keep your group plan FREE Quotes
Health Coverage is the 2nd most important benefit to the employees and families, only after their paycheck.
If your employees are on Medi-Cal, they might have to take the entire day off for Medical Services – Presenteeism
Currently GUARANTEED issue and generally NO Pre X, under AB 1672 enacted in 1992 and AB 1083 effective 1.1.2014
Covered CA Brochure on Advantages of EmployER Plans
No mandate for Employers under 50 employees
Premiums are FULLY Income tax deductible for EmployER and not considered income to employee.
Section §106 is the biggest break there is in the Tax Code, even more than Mortgage Interest.
Section 125 – Premiums paid by Employee are a full deduction, including Social Security & FICA
Additional Tax Credits for employees making less than $50k
No more Management Carve Outs?
Other Taxes:Except Grandfathered Plans
Saves Social Security Tax 6.2% from Employer
4.2% from Employee
Worker’s Compensation Discount
Check out related pages in Employer Mandate Section
Better Provider Networks in Group Plans?
Subsidy Chart for Individuals
Mandatory (Should) notice to give employees about Health Care Reform
Employer Tax Credit Management Carve Outs where you only cover owners & managers, OK for dental, Long Term Care, but no longer allowed under §2716