I have had a couple of companies recently where the best way to help the employees was to cancel their insurance. Seriously, and here is why:
See if these facts describe your business:
You are a small employer, who either doesn’t pay alot towards the insurance, or pays nothing at all.
You only have a couple of employees actually covered because they cannot afford it, or they have spousal or other coverage.
Most of your employees would be eligible for a subsidy, earning under $40,000 a year.
If that describes your company – heres why it works:
The rules say that – if the employer “offers” coverage, the employee cannot go to the exchange and get a subsidy. So with your company, they have to pay, say $250-$300 a month for health insurance. If you cancel the coverage, now the employee can pay $100-$200 a month on the exchange, with the subsidy they would get.
You get out from underneath a non-functional health plan, don’t have to pay for any of the health insurance, and worry about renewals and participation and COBRA and all that fun stuff.
What do you do with the money you save? Buy yourself a good health plan. And, you are a business owner – I am sure you can find something to do with the remaining money you saved…