Bundling with a Larger Company for Better Health Insurance?

[SAE_Associates]

Hi everyone!

One of my coworkers mentioned the possibility of a small business bundling with a larger company for better health insurance. Does anyone have any experience getting their health insurance with another company and can elaborate on how it works?

All responses are much appreciated!

[Freelancier]

There are quite a few "associations" that offer insurance to their members. What I've seen from the health insurance side is that the plans and companies offered are often not that appealing and the price isn't really any better than you could now get by shopping on your own. Your best bet is to have a company with at least two people, though, because the individual market is still less profitable than the "business" market, so the doctor networks are better in the business market than in the individual market.

[Paul]

It may depend very much on each state. Each has its own set of insurance regs and quirks besides the federal ones.

[turboguy]

Back a few years ago we were able to save a lot on our business health insurance by joining our local chamber of commerce. I am not sure that helps much now since the unaffordable health care act.

[Allay]

Hi there!

You could join a "captive insurance" group, which is usually viable if your company has more than 25 employees. Keep in mind that captives offer insurance to different group sizes depending on which state you're in, (NY and CA will give quotes for less than 100 employees) as a general rule of thumb, you'll need at least 25 employees enrolling in health benefits for a captive to talk to you.

Another option might be to offer an Health Reimbursement Arrangement (HRA). This (explainer video (https://www.youtube.com/watch?v=FEvoVgaNwG0) shows how HRAs help companies save on health insurance.

You could also join a Professional Employer Organization (PEO). If you plan on growing your company larger than 15-20 people, PEOs get expensive very quickly.

Hope this helps!
Alex