Across the country, health insurance costs continue to rise, and large employers in Glendale, Arizona, are looking for ways to contain expenses while still offering high-quality healthcare to their workers. Average premiums in the US are over $7,700 for an individual and over $22,000 for a family plan. These costs have increased nearly fifty percent in the last decade. Employers must ensure that they cover enough of the premium that the program meets the IRS affordability standard. That means the employee can’t be required to pay more than 9.61 percent of their gross income for a plan that provides comprehensive coverage and is designed to absorb sixty percent of typical usage expenses.
Large businesses must also offer coverage to their workers’ dependents (defined as children up to age 26). Still, that coverage isn’t subject to the affordability requirements. Also, all insurance policies must cover these essential services:
Arizona also requires coverage for additional services:
Small companies with under fifty workers can choose whether they want to offer health insurance. If they do, the plan must meet the ACA and Arizona coverage requirements. However, small businesses can take a simpler approach to helping their employees with health care costs by offering a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). If a company has a health insurance program or a flexible spending account (FSA), it can’t also sponsor a QSEHRA. The business must offer the HRA to all full-time employees or none.
With a QSEHRA, the company can decide how much it will contribute to the employee’s accounts. Then, when the workers pay for health care costs, they submit their claim for reimbursement to the QSEHRA. The health care plan the employee pays for with the QSEHRA funds must be ACA qualified. Suppose a company contributes to an account and an employee doesn’t use it. In that case, the business can either keep the allocated funds or roll them over for future usage.
An attractive benefits package may have several components designed to appeal to different parts of the company workforce. Most employees want health insurance and paid time off. Beyond that, the top choices become less consistent. Many workers value a retirement savings plan, although these are not as widely offered as health insurance.
In Arizona, an employer with fifteen or more workers must provide up to forty paid sick leave hours per year. Smaller companies must grant up to twenty-four paid sick time hours. Employees can use the time for their own or a family member’s injury or illness or seek care and treatment. In addition, there are other allowable uses, such as school closure and domestic violence. Arizona employers don’t have to provide paid holidays or vacation time, but many do.
Finding group health insurance plans and employee benefit programs isn’t something that should be sorted out in a hurry. It’s important that you provide your employees with the best healthcare, wellness and benefit plans you can possibly find if you wish to keep them all happy. Instead of finding an insurance agent on your own and wasting time, use an insurance broker through Taylor Benefits Insurance Agency. We work with all the most dependable and affordable insurance agencies throughout the State of California.
By working with some of the best insurance agencies, we are able to provide businesses with low cost healthcare and employee benefit options. Of course, we offer our basic plans the PPO, HMO, FSA, and HSA. We also offer other services and can easily fabricate a customized plan to meet your and your employees’ needs and budget.
You can make the most of your employee benefits packageby seeing what tax breaks you’ll qualify for. This is a great way to gain leverage and maximize the value of your employees’ benefit plan. Some businesses might be able to benefit from a 35-50% tax credit based on the amount paid out for employee health benefits annually.
Your employees can also benefit from tax-free money by opening a HSA or FSA account to help pay for any out of pocket expenses relating to healthcare. This is money earned by the employee. This money can either enter a savings account or flex spending account depending on the employee’s preference.
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