Alternatives to Employer-Funded Health Insurance: Make Sure Your Employees Know Their Options

The challenge of managing the ever-increasing cost of health insurance has become more difficult as additional factors contribute to the number and frequency of claims due to an aging workforce and increased COBRA eligibility.

Employers may not be able to eliminate claims, but they can choose to educate and inform employees about comprehensive, affordable health insurance options to employer-based coverage.

Oswald Companies and UROne Benefits™ can make available personal health insurance options such as short-term, personal and family health insurance, as well as Medicare plans that can impact claim occurrence from:

• New hires
• COBRA annuitants
• Employees working beyond age 65

Filling the gap

Many employers require new hires to complete a waiting period of up to 90 days before health insurance coverage begins. Marketplace and short-term plans can bridge the new hire waiting period gap in coverage.

Employers can also inform employees of personal health insurance options through the continuation of coverage under the COBRA law. Individuals and families can pay the monthly premium to continue coverage under the employer-based plan. People who utilize this option tend to:

• Be older than the average age of the full-time covered employee, which is 42 years old.
• Use health care more frequently. COBRA claimants had almost five times more hospital days and filled twice the prescriptions than those covered at work.
• Have more chronic conditions. People using their rights under the COBRA law are more likely than employees working with employer-based coverage to have chronic conditions, such as diabetes, cancer and high blood pressure.
• Spend more on health care. In 2018, full-time workers with individual, employer-based coverage used an average of $6,724 in health care services, while those on COBRA used an average of $18,752.

For a variety of reasons, more people are choosing to work beyond age 65. They are maintaining employer-based insurance even as plan deductibles and out-of-pocket costs increase.

Medicare

By the end of 2024, the U.S. Bureau of Labor Statistics projects the labor force will grow to 164 million, 25% of whom will be 55 or older. Employees aged 65 and older are projected to have a faster rate of annual labor market growth than any other age group. The Kaiser Family Foundation reports that individuals aged 65 and older are responsible for almost 40% of total health spending.

Employees aged 65+ can choose Medicare as their primary health insurance.

Plans such as Medicare Advantage can provide an attractive, personal option, eliminating the employee monthly cost of enrollment in the group health insurance plan. It can also reduce employee out-of-pocket costs.

Medicare plans may provide greater levels of coverage and access to benefits, such as prescription drug, dental, vision, hearing aids, meal and transportation services at no additional cost.

Contact a benefits specialist at UROne Benefits™ or at 800-722-7331 to explore your options for providing health insurance while also being mindful of your bottom line.