Yes, small business employees and self-employed individuals often use Core Health Insurance in a variety of situations. Freedom Benefits offers SIMPLE Cafeteria plans to help small businesses incorporate Core Health Insurance with other health plan choices. The guaranteed issue feature makes this insurance popular with employers who wish to make the option available to all employees regardless of health history.
Core Health can be used in combination with other health benefits or as a stand-alone employee benefit. There are no 'participation requirements' as in other group health plans so that small companies where only a minority of employees want insurance are still eligible for Core Health Insurance.
Some have compared Core Health Insurance in a small business setting to the mini-med health plans offered in larger retail employers like Wal-Mart. While the benefits are not identical, the concept is the same - offer a trimmed down basic health plan to employees who might otherwise have no coverage at all. Those who may have coverage through a spouse can still use this insurance to boost the overall level of benefits.
When properly set up and administered, a small business health plan makes the insurance and the benefits tax-free to employees while also offering the employer a reduction in wage taxes payable.
The same issues regarding the use of Core Health limited benefit insurance as a supplement vs. alternate to major medical insurance apply to small business employees as other individual purchasers. Each employee who desires insurance coverage enrolls separately.
The cost of insurance may be paid by the employer, the employee or a combination of both. The employer may be the direct premium payer or may supplement the cost of insurance directly or through reimbursement at a later date.
The most common inquiry we receive on this topic is whether it makes sense for a small business without a health plan to consider using Core Health Insurance as a "starter plan". While there are merits to this thinking, we believe that the most important first steps an employer should take are to establish a flexible benefit plan for the business and then establish a funding plan (called a 'defined contribution plan') even if the available funding for employee health benefits is minimal. At that point, each employee can make an individual determination as to whether this type of insurance makes sense for them. We do not think it makes sense for any small business to force a "one size fits all" approach to health insurance on its employees as some companies have done in the past. The recent implementation of health reform law makes this practice of standardized health plans obsolete for most small businesses.
For maximum tax benefits, employee satisfaction and legal protection, we strongly recommend that a small business formally adapt a flexible benefit plan prior to entering an agreement to pay for any employee health benefits. Assistance with setting up and running a small business flexible benefit plan is available from Freedom Benefits for a modest fee; typically under $150 per employee per year. See the small business pages at FreedomBenefits.org for more information.
OTHER NEW COVERAGE OPTIONS:: Obamacare supplement insurance, and high deductible insurance from United States Fire Insurance Company as well as a new telemedicine plan also administered by SASID are available to help lower the high out-of-pocket expense of Affordable Care Act policies. Read more information, get rates and enroll online.
CORE HEALTH INSURANCE IS A SUPPLEMENTAL INSURANCE AND IS NOT A REPLACEMENT FOR OBAMACARE. This insurance is not intended to help members or their employers comply with the provisions of the Affordable Care Act commonly known as the "individual mandate" and does not offer the provisions known as "minimum essential coverage" and will not satisfy the individual responsibility requirements of section 5000A of the Code. Questions about compliance with the Affordable Care Act may be directed to the free consumer assistance program at www.OnlineNavigator.org. Members of the Association of United Internet Consumers (AUIC) have access to this insurance, online discount programs including discount prescription drugs, and educational materials. As a member of AUIC, you are eligible for exclusive rates and plans. AUIC membership is available at time of insurance enrollment. This web site is independently owned and managed by Tony Novak operating under the trademarks "Freedom Benefits", "OnlineAdviser" and "OnlineNavigator" at P.O. Box 333, Newport NJ 08345.Telephone (800) 609-0683, Email email@example.com. Opinions expressed are the sole responsibility of the author and do not represent the opinion of any other person, company or entity mentioned. Tony Novak is not an agent, broker, producer or navigator for any federal or state health insurance exchange but may provide uncompensated advice, reviews and referrals to these official resources. Novak is compensated as an accountant, adviser, affiliate consultant, marketer, reviewer, endorser, producer, lead generator or referrer to some of the commercial companies listed on this site. Information is from sources believed to be reliable but cannot be guaranteed. "Core Health Insurance" is a brand owned by SASid, not related to the operator of this web site but marketed under a producer license agreement.