The End of Small Business Health Insurance

THE END OF SMALL BUSINESS HEALTH INSURANCE Why 60% will abandon group health insurance for individual health insurance and defined contribution by 2017 A BRIEF TIMELINE OF SMALL BIZ HEALTH INSURANCE CHANGE AHEAD 1940s 1960s 1980s 1990s 2000s 2010 2014 2025 POST-WWII 1960s 1980s - 1990s 2000s 2010 2025 Birth of tax-free Employer- State reforms to High costs and Health reform Individual market employer health provided group small biz health restrictive (ACA) signed into expected to grow insurance. health insurance insurance creates requirements law; major ACA from 31 million is universal. minimum start pushing changes to insured in 2012 participation and small biz out of individual to over 150 contribution the group market. insurance as of Million insureds requirements. Individual market 2014. in 2025. Costs begin to starts to grow. rise. WHY INDIVIDUAL HEALTH INSURANCE IS BETTER HEALTH INSURANCE COSTS ARE INDIVIDUAL HEALTH INSURANCE PROVIDES 1 UNSUSTAINABLE GREATER VALUE TO EMPLOYEES $4,885 VChoice Employees choose the coverage and doctors that best fit their family's needs and budget. 1 160% $1,878 Employer Costs 1214% VPortability $999 Employee Costs $318 Employees keep their health insurance when they leave the company. Average Annual Cost to Cover a Single Employee INDIVIDUAL HEALTH INSURANCE EMPLOYERS CAN REIMBURSE FOR COSTS LESS INDIVIDUAL HEALTH INSURANCE With a Defined Contribution Healthcare Plan 20% to 60% Less Taxable Healthcare Allowance, OR Tax-free Health Reimbursement Plan THERE'S NO LONGER A NEED FOR SMALL BIZ HEALTH INSURANCE With the unsustainable cost of group health insurance, Why are Small Businesses the advantages of individual health insurance, and Still Offering Group Health the ability to reimburse employees' individual health plans... Insurance? Infographic Created and Published by Zane Benefits [June 2014). Zane Benefits is the Sources: THE INEVITABLE END OF SMALL BUSINESS HEALTH INSURANCE #1 Online Health Benefits Solution • Zane Benefits, The Inevitable End of Small Business Health Insurance (2014) [http://offers.zanebenefits.com/whitepaper-the-inevitable-end-of-small- business-health-insurance] • US Census, Income, Poverty, and Health Insurance Coverage in the United States: (2012)[https://www.census.gov/prod/2013pubs/p60-245.pdf] Learn more at www.ZaneBenefits.com • Kaiser Family Foundation, Average Single Premium per Enrolled Employee For Employer-Based Health Insurance. [http://kff.org/other/state-indicator/single- coverage] • Centers for Medicaid and Medicare Services , QHP Landscape Individual Market Medical Dataset [https://data.healthcare.gov] IZaneBenefits 4ZaneBenefits WHITEPAPERS 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. 666T 2000 2001 2002 2003 2004 2005 2006 2007 8007 6007 2010 2011 2012 2013