Given the rising premiums and other costs associated with the Affordable Care Act, some small business owners are starting to pay their employees to buy their own insurance.
Pay employees to buy health care?
Shifts to the ACA have altered health care for small business owners. Higher monthly premiums are forcing some to make a tough call – offer reduced policies with bare-bones benefits, or find another way to ensure employees are covered.
Providing coverage that included a fraction of past plans’ benefits wasn’t something that made sense for Monty Hagler, a small business owner based in North Carolina. He had to act in order to adapt to rising insurance premiums, but simplified policies weren’t good for his staff. Instead, he decided to get creative and pay his workers the money they’d need to get coverage via the ACA’s private exchanges.
Busines owners like Hagler aren’t alone in this strategy – insurance brokers are getting more inquiries about individual coverage. The brokerage firm HealthMarket has seen a 40% in applications this year.
While the Hagler is exempt from the ACA – it only applies to companies with more than 50 employees – many small business provider health insurance as a means to retain and recruit employees.
Would you consider paying employees so they can purchase their healthcare on their own?
Tell us why or why not.