Employers must make a big decision about whether to offer health insurance, but it can be difficult to know where to begin, especially for small firms without an HR department or benefits specialist to guide them.
Establishing a formal
health benefit plan, however, is well worth the time and work. Offering an
employer-sponsored health insurance plan has several benefits, including
assisting in employee attraction and retention, differentiating your company,
and promoting a content and healthy staff.
In this post, we'll
identify the top 20 health insurance providers in the country and discuss
non-traditional group health insurance plans for employers who are looking for
alternatives.
Listing health insurance companies by market
share
If you want to give
excellent health benefits, knowing which health insurance carriers are reliable
and provide a variety of products and providers is a smart place to start.
To be clear, the
amount of the market share neither ensures the company will maintain its
position throughout the year nor does it necessarily correlate with the quality
of the product or medical treatment.
Nevertheless, market
share size is a reliable indicator of a company's ability to compete, its
financial stability, and the security of its structural foundation, and
insurers with bigger market shares have higher direct written premium amounts.
How much money in premiums do health insurance
companies get?
The CDC estimated that
there were roughly 85 million COVID-19 cases in the U.S. during the COVID-19
pandemic. As a result, the health sector recorded an approximately 14% rise in
health benefit claims, or $92 billion, which was a significant increase from
previous years.
In the United States,
health insurers received over $890 billion in total net premiums, according to
the 2021 NAIC Health Insurance Report1. Over 2020, American consumers' premium
expenditure increased by 8%.
In the previous year,
United Health, which comes in first on the list below, wrote nearly $195
billion in premiums. But Massachusetts' Blue Cross Blue Shield only wrote $8.4
billion. However, over the previous year, both of these businesses experienced
growth.
Due to delayed
treatment during the previous year, deteriorating health conditions, and the
need for care from older and higher-risk patients, the health sector
anticipates further increases in the number of medical services required.
A health plan and
other perks that will support required medical treatments in the upcoming years
can help firms of all sizes better entice and keep their best workers.
Why health stipends and HRAs may be preferable
for small companies
During the COVID-19
pandemic, the CDC reported nearly 85 million COVID-19 cases throughout the U.S.
As a result, the health industry reported almost a 14% increase—equalling $92
billion—in health benefit claims, which was a big jump compared to prior years.
According to the 2021
NAIC Health Insurance Report1, U.S. health insurers
earned approximately $890 billion in total net premiums. This was an 8%
increase in premium spending from U.S. consumers over 2020.
United Health, which
takes the top spot in our list above, wrote roughly $195 billion in premiums
over the past year. Blue Cross Blue Shield of Massachusetts, however, only
wrote $8.4 billion. However, both of these companies saw an increase over the
last year.
Going forward, the
health industry expects continuing increases in medical services needed due to
delayed treatment over the past year, worsening health conditions, and older
and higher-risk patients needing care.
Considering this,
employers of all sizes can better attract and retain their employees by
offering a health plan and other additional benefits that will support
necessary medical services in the coming years.
Why health stipends and HRAs may be preferable
for small companies
Small and medium
enterprises may find it challenging to budget for group health insurance due to
increased premium costs. Employers who cannot afford a typical health benefit
plan, however, have more options. One of the choices is health reimbursement
agreements (HRAs).
An HRA is a health
benefit that pays employees tax-free reimbursement for out-of-pocket medical
expenses including prescription drugs and copays. By establishing an allowance,
employers may better control their spending, and employees will have greater
control over their health benefits.
Four health benefit
plan choices that could be suitable for you and your employees are discussed
below.
Qualified small employer HRA
Small business
Employers without a group health insurance coverage and with less than 50
full-time equivalent employees (FTEs) may offer qualified small employer HRAs
(QSEHRAs) as a health benefit. Employers can select a benefit that suits their
budget, and employees can choose an insurance plan that meets their needs and
make purchases to meet their specific medical requirements.
The flexible allowance
allows for tax-free repayment of out-of-pocket expenses such as health
insurance premiums. The full list of expenses provided by the federal
government in IRS Publication 502 is available in our interactive expense tool
if you're wondering what expenses are qualified for reimbursement.
Individual coverage HRA
The individual
coverage HRA (ICHRA), like the QSEHRA, is a health benefit that enables
employees to receive tax-free reimbursement for individual health insurance
premiums as well as other medical services and costs.
But as long as the
ICHRA isn't made available to employees who are covered by your group plan, it
can be used as a stand-alone benefit or provided alongside a group health
insurance plan and is accessible to enterprises of all sizes.
Employers can adapt the ICHRA to their needs by setting various allowance levels in accordance with the 11 employee classes. To access the benefit, employees need just opt in or out of it before it starts and certify at the start of each month that they are still protected by individual health insurance.
Integrated HRA
The integrated HRA is
for you if you want to keep your workplace health insurance or switch to a
high-deductible health plan (HDHP) to reduce your rates.
For employers of all
sizes offering a group health insurance plan that want to supplement their
benefit in addition to standard insurance, there is an integrated HRA, also
known as a group coverage HRA (GCHRA). It's a tax-free reimbursement mechanism
for employers who desire more control over the price of their health benefits,
much like QSEHRA and ICHRA.
Integrated HRAs
provide several special advantages over regular HRAs. A predetermined
deductible, an unrestricted allowance amount, and a cost-sharing percentage are
all options for employers to designate for employees. There are seven employee
classes that you can use to tailor your integrated HRA, similar to ICHRAs.
Once the benefit is
created, employees can start getting reimbursed for eligible out-of-pocket
expenses that their group health insurance plan doesn't fully cover.
Health stipend
A health stipend is an
additional approach to provide your staff flexible perks. The fact that health
stipends are less federally regulated than other conventional health benefits,
such as HRAs, makes them useful. Stipends could therefore be simpler to
administer, especially for small employers. This type of incentive is available
to businesses of all sizes, though.
Stipends are fixed
sums of money that employers offer their staff to spend on whatever they see
fit, like a health insurance plan and other medical costs. The amount given is
viewed as additional compensation that was added to your employees' paychecks. The
sum becomes taxable at the end of the year as a result, but your employees will
have a wider range of options for how to use their overall stipend money.
How PeopleKeep can assist you in offering
benefits to employees
HRAs and stipends are
great ways to offer a health benefit, but you might worry about how to handle
their administration. Fortunately, PeopleKeep's HRA administration software and
stipend software can assist you in efficiently administering your employee
benefits.
Employers can manage
their benefits on a straightforward and efficient platform thanks to
PeopleKeep. So that you don't have to, our team of professionals concentrates
on the minutiae, such as paperwork review and compliance.
PeopleKeep has all you
need to bring cheap and comprehensive benefits to your compensation package,
from aiding in benefit design to award-winning employee assistance.
Conclusion
While there are many
alternatives for organizations to give a typical group health benefit due to
the large number of health insurance providers, it's crucial to take other,
more flexible health benefit options into consideration. You can easily start
providing extra benefits by using HRAs and health stipends instead of plunging
into the management of group benefits. Additionally, they provide your staff
the freedom to select the health plan that's best for them.
We would be happy to
assist you in getting started if you are an employer thinking about offering an
HRA or stipend at your business. We will get you moving by scheduling a call
with a personal benefits counselor at PeopleKeep.
The top 25 health
insurance providers in the US are listed below in descending order of market
share size:
01. United Health
02. Kaiser Foundation
03. Anthem Inc.
04. Centene Corporation
05. Humana
06. CVS Health
07. Health Care Service Corporation (HCSC)
08. CIGNA
09. Molina Healthcare
10. Independence Health Group
11. Guidewell Mutual Holding
12. California Physicians’ Service
13. Highmark Group
14. Blue Cross Blue Shield of California
15. Blue Cross of Michigan
16. Blue Cross Blue Shield of New Jersey
17. Caresource
18. UPMC Health System
19. Blue Cross Blue Shield of North Carolina
20. Carefirst Inc.
21. Metropolitan
22. Health Net of California
23. Local Initiative Health Authority
24. Point32Health
25. Blue Cross Blue Shield of Massachusetts
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