Group Health Insurance Premiums Expected to rise 9%

California Health Insurance News:

Employers’ health-care costs are projected to increase by 9% next year (according to PricewaterhouseCoopers), and so they are looking for ways to economize on health insurance. (That same survey found that 42% of employers plan to increase health-care contributions from employees to help cover those higher costs.)

New employer plans, especially in the small business marketplace are choosing “leaner products where employers are very focused on managing their overall costs”. “Lean” is basically used to describe lower-cost plans with higher deductibles or that otherwise focus on covering catastrophic coverage and first dollar wellness benefits.

Shopping for Group Health Insurance has never been easier. Online quoting systems like Quotebroker allow employers to shop all popular plans in the state within minutes. Once a plan is selected, you may enroll online or call for assistance.

Small Business Health Insurance Tax Credit

Health Care Reform provides immediate benefits for Small Business Owners.

If you a small business or tax-exempt organization that pays at least half the cost of single health insurance coverage for your employees, you may qualify for a new tax credit. The new small business health care tax credit is effective now as part of the Affordable Care Act, which became law earlier this year.

Are you eligible?

The credit is targeted to help employers with low and moderate income workers afford to offer employees health insurance coverage. Generally, employers that have fewer than 25 full-time equivalent (FTE) employees and pay wages averaging less than $50,000 per employee per year may qualify for the credit. Because the eligibility formula is based in part on the number of FTEs, not the number of employees, employers that have more than 25 individual workers may also qualify if some of their workers are part-time.

How much is the tax credit?

For each year from 2010 through 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations. An enhanced version of the credit will be effective beginning in 2014.

When can I claim the credit?

Small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. Tax-exempt employers can expect additional information in the coming months on how to claim the credit. Find out more about the credit and how to claim it at www.IRS.gov

If you are paying too much for your small group health insurance plan, receive a free instant health insurance quote online or call (800) 783-0802

Anthem Blue Cross joins CaliforniaChoice small group exchange

Today Forbes announced that Woodland Hills and Orange, CA – Anthem Blue Cross and CHOICE Administrators, Inc. (CHOICE Administrators) together announce an agreement for Anthem Blue Cross and Anthem Blue Cross Life and Health Insurance Company to join the CaliforniaChoice small group health exchange. As of June 1, 2010, the partnership will offer HMO and PPO benefits for all new and renewing CaliforniaChoice employer groups.

Anthem Blue Cross will join the following health plans currently available through the CaliforniaChoice small group program: Health Net, Kaiser Permanente, Sharp Health Plan and Western Health Advantage.

CaliforniaChoice is the largest health insurance Exchange in America. Since its approval by the state in 1996, CaliforniaChoice has administered over 19 million member months of exchange health coverage.

Employers in the CaliforniaChoice exchange control their benefits budget by setting a monthly contribution that is used toward employee benefit premiums.

Employees are able to take their employer’s contribution and apply it toward the health plan and coverage level they like best, choosing from a selection of HMO, PPO and HSA-qualified benefits offered through the available participating health plans’ special disease management programs.

To receive a free instant CaliforniaChoice health insurance for your business, visit QuoteBroker.com or call (800) 783-0802 x 711.

Employee Benefit Shopping 101

As the fall season approaches, many large and small companies will begin to start shopping for their 2009's employee benefit programs. Typically employers should plan on shopping insurance 60-75 days before the desired effective date.

High deductible health plans and Health Savings accounts will continue to be popular. These plans make workers responsible for costs up to a certain amount but then covers most expenses over that. Workers have a greater risk of paying out-of-pocket expenses, but premiums are lower — so their paychecks are higher. Wellness programs encourage them to take care of themselves, ultimately cutting costs for themselves, their employer and the health plan. Wellness plans usually allow employee's to visit the doctor for a flat co-payment of $20-$40, for services such as well baby care, annual physicals and well woman's check up's. Others allow for office visits without first satisfying their deductible.

For 2009, most employers will see premium increases in excess of 10%. This leaves employers already stressed by a stagnant economy with a larger dilemma: how to offer good health benefits to keep or attract quality workers at a price they can afford.

It is important to plan ahead. October is a great month to begin shopping for 2009's benefit plans. For employer groups with less than 50 employees, shop online with an internet brokerage firm. Before you start the process you will need some basic information. It's actually very simple. You will need your employees dates of birth (along with any family members participating) and their zip codes. The plan design and costs will evolve as you begin to shop for plans. An online brokerage service such as Quotebroker.com allows you to use the same software system brokers use to shop and compare prices throughout the state. Instantly compare affordable health insurance options without ever speaking to an insurance agent. Once you have completed your market study, QuoteBroker has Group Insurance specialists available to assist you with the enrollment process. Larger groups are encouraged to use a quality insurance broker that has experience in negotiating rates with multiple insurance providers.

If you have more than 20 employees "ask for more". There is often room to negotiate lower rates for additional products such as dental, vision and term life insurance.

Employee Benefits - New benefits you can implement for free

An adequate employee benefit program is essential in business today, no matter what size company you own. Affordable health insurance and other group insurance programs are a necessary tool for attracting new employees and retaining current ones. In fact, when it comes to employee retention, benefits can make or break their company spirit. Certainly new employees consider benefits to be a decisive factor when it comes to evaluating new job opportunities.

Employee benefits like health insurance, life insurance and retirement plans can be costly, which is why almost all small employers share the costs with their employees. Another option for keeping costs in check is to offer a more modest benefits package. Basic health insurance and dental, don't have to be expensive.

Voluntary benefits have never been more popular than they are today. Employers are "sponsoring" - not "paying for" additional benefits for their employees. For example; you may have several employees that would like to purchase life insurance, but they could not normally qualify for a plan with reasonable premiums, due to their health status. You could offer a small group life insurance or disability plan that employees can buy without having to qualify medically. (check around for participation requirements, as many companies require a percentage of all eligible employees to participate). If you have not looked at Group Life insurance rates - do. If you have a small company, you will most likely decide to pay for the group premium. Dental, Long Term Care and Disability insurance are other types of voluntary benefit programs. These programs are "feel good" benefits that don't have to cost you a dime. For greater participation, implement a Cafeteria 125 plan that allows employees to pay for their benefits before tax and through automatic payroll deduction.

In these economic hard times, many employers are looking to cut benefits. Instead, shop around for better benefits and premiums. Insurance providers are also fighting to retain their book of business. They don't want to loose you. QuoteBroker allows small businesses to shop for insurance online, or work directly with an employee benefit specialist that can often negotiate better premium rates and plan features. Start today by calling (800) 783-0802 x 711

Employer Sponsored Health Insurance is no free ride to employees.

A Seattle actuarial firm studied the costs for a family of 4 participating in an employer sponsored preferred provider plan and the results were an annual family expenditure of $15,609. This was up 7.6% from the preceding year.

These figures were based on a typical family that will pay this amount in out of pocket health care costs for Rx drugs, Dr. Visits, Annual Deductibles and Co-payments. After studying 14 major U.S. Regions, the study concluded that the most expensive market was Miami, FL and the least expensive market was Phoenix, AZ.

It is my opinion that these figures will increase as more employer's attempt to reduce their employee benefit costs by selecting new lower priced health insurance plans that shift many of the health care costs to the employee. New health insurance plans are now being offered that limit doctor visits to 2 or 3 visits a year, plus free or low cost annual screenings for physicals and well women's check ups. Additional office visit charges will be incurred by the employee.

To locate an affordable health insurance plan for your family or business, visit QuoteBroker, where you will receive free instant quotes, plan comparisons and advice.