Experts Report on the Future of Health Insurance

Saratoga Benefits recently held a seminar at Moorestown Community House to answer questions about what health insurance will look like moving forward. Saratoga president Amy Webb, along with Scott Wham, J.D., Director of Compliance at Kistler Tiffany conducted the informative seminar.

Geared to business owners and H.R. specialists, it provided answers about the American Care Act, reform updates, QSEHRA and Medicare. Here’s a brief summary of its highlights:

ACA: If the Affordable Care Act is not repealed, then expect significant changes. The big question that needs to be solved is: how to pay for it? Many of the taxes that have been built into the ACA have been postponed. The ACA cannot be funded indefinitely without the necessary taxes.

Health Insurance as a Deduction: Currently, health insurance is a 100% write-off for employers, which is a great incentive for them to continue to fund a significant portion of the premiums. Some Republicans are proposing that the employer portion should no longer be a business deduction and the employee benefit should be considered income. How will this affect employers? As 175 million employees get their benefits through their employer, this proposed change could have a significant impact on the employer’s bottom line and the employee’s paycheck.

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA): Small business owners can choose to set aside funds in a cash account for their employees to buy health insurance on their own in the marketplace. The upside to QSEHRA is the employer can still get the business deduction, and not have to deal with the headache of choosing an insurance plan.

While this sounds appealing, there are also some challenges. First is that this cash set aside must be offered to all employees, not just the ones who need insurance. Secondly, this plan must apply throughout the company – owners included. The most often heard complaint about QSEHRA is that there are only 2 plans to choose from in New Jersey via the open marketplace for a single applicant. Employees may be dissatisfied with the choices available to them compared to what ‘s available via a group plan.

The next seminar will take place in the fall of 2017. If you would like to be notified via email of the next seminar, contact Kim Pewor.

Have a specific question about your benefits? Contact Amy Webb



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