Infographic on The Inevitable End of Small Business Health Insurance


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The Inevitable End of Small Business Health Insurance.

Learn why 60% of small businesses will abandon traditional group health insurance in favor of individual health insurance and defined contribution by 2017.

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Infographic on The Inevitable End of Small Business Health Insurance

  1. 1. THE END OF SMALL BUSINESS HEALTH INSURANCE Zane Benefits is the #1 Online Health Benefits Solution Average Annual Cost to Cover a Single Employee Infographic Created and Published by Zane Benefits [June 2014]. Sources:  Zane Benefits, The Inevitable End of Small Business Health Insurance (2014) [ business-health-insurance]  US Census, Income, Poverty, and Health Insurance Coverage in the United States: (2012 )[]  Kaiser Family Foundation, Average Single Premium per Enrolled Employee For Employer-Based Health Insurance. [ coverage ]  Centers for Medicaid and Medicare Services , QHP Landscape Individual Market Medical Dataset [] DISCLAIMER: The information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state. A BRIEF TIMELINE OF SMALL BIZ HEALTH INSURANCE 1940s 1960s 2000s 2010 2014 2025 POST-WWII Birth of tax-free employer health insurance. 1960s Employer- provided group health insurance is universal. 1980s - 1990s State reforms to small biz health insurance creates minimum participation and contribution requirements. Costs begin to rise. 1980s 1990s 2000s High costs and restrictive requirements start pushing small biz out of the group market. Individual market starts to grow. 2010 Health reform (ACA) signed into law; major ACA changes to individual insurance as of 2014. 2025 Individual market expected to grow from 31 million insured in 2012 to over 150 Million insureds in 2025. INDIVIDUAL HEALTH INSURANCE PROVIDES GREATER VALUE TO EMPLOYEES INDIVIDUAL HEALTH INSURANCE COSTS LESS EMPLOYERS CAN REIMBURSE FOR INDIVIDUAL HEALTH INSURANCE Choice Employees choose the coverage and doctors that best fit their family’s needs and budget. 20% to20% to 60% Less60% Less 1 GROUP HEALTH INSURANCE COSTS ARE UNSUSTAINABLE $1,878 $4,885 $318 $999 Employer Costs 160% Employee Costs 214% 2 Portability Employees keep their health insurance when they leave the company . 3 4 Why 60% will abandon group health insurance for individual health insurance and defined contribution by 2017 Taxable Healthcare Allowance, OR Tax-free Health Reimbursement Plan WHY INDIVIDUAL HEALTH INSURANCE IS BETTER THERE’S NO LONGER A NEED FOR SMALL BIZ HEALTH INSURANCE Why are Small Businesses Still Offering Group Health Insurance? With the unsustainable cost of group health insurance, the advantages of individual health insurance, and the ability to reimburse employees’ individual health plans… … With a Defined Contribution Healthcare Plan