Managed individual health benefits are Remodel Health’s proprietary health benefits delivery method that allows employers to give employees the funds to purchase individual health insurance plans on their own. Our solution is the antithesis of the one-size-never-fits-all approach to traditional group health insurance. And it’s taking over the health benefits industry by storm!
In order to understand how managed individual health benefits work, we’ve broken our method down into 4 simple steps:
Step 1: The employer ditches their traditional group health insurance plan.
In order for managed individual health benefits to work, the employer has to ditch their traditional group health plan. When this happens, all of the employees who no longer have access to the group plan then become eligible for Advanced Premium Tax Credits. APTCs are a discount savings tool for individual health insurance plans.
Then, the employer has a chunk of change available. Because they are no longer spending on employee health benefits, what are they to do with these funds, you ask?…
Step 2: The employer uses part of their savings to provide a wage increase to all employees.
Using some of the funds that were previously budgeted for a traditional group health plan, the employer can determine a new budget to provide each employee with a set amount of money in addition to their regular pay—a wage increase. This post-tax wage increase is the Remodel Health solution—offered by employers and given to each of their employees.
Notice that we mentioned the employer only uses part of their savings from ditching the group plan to provide wage increases. That’s because when combined with the discounts from Advanced Premium Tax Credits mentioned above, employers still save an average of 30-50% on healthcare annually after budgeting for employee wage increases!
Step 3: Employees use their wage increases to purchase their own individual health plan with help from licensed benefits advisors.
Next, employees are able to use their wage increases to purchase an individual health plan from the Health Insurance Marketplace. The Marketplace houses high-quality health plans from name-brand carriers such as Blue Cross Blue Shield, Cigna, UnitedHealth Group and more! Traditional group health insurance, which has products for an entire group of employees, is different from individual plans, which has products for individual people and families.
The real beauty in this step is that the employees no longer have access to a traditional group health plan. Which means they are now eligible for discounts on individual health plans on the Marketplace. Advanced Premium Tax Credits discount the cost of individual plans a whopping 59% on average!
This is also the step when Remodel Health helps employees get enrolled in health benefits that meet their unique needs. Our benefits advisors carefully evaluate information for each employee and ensures their new, individual health plan is a great fit. Gone are the days of one-size-fits-all group plans!
Step 4: Remodel Health’s software handles the rest.
Lastly, the Remodel Health software platform streamlines the rest of the process for both employers and employees. Our software enrolls each employee in their individual health benefits and packages all the plans into one convenient group bill for the employer. The employer can easily check their personalized dashboard to make staffing changes, provide healthcare reimbursements, organize wage increases through payroll and more! The Remodel Health software can even re-enroll employees in their individual health benefits year after year.
We call our method “managed individual health benefits” because we manage your employees’ individual plans so you don’t have to.
Interested in learning how managed individual health benefits can help you cut costs? Or how to improve health benefits for your team in a streamlined, compliant way? Contact our team by emailing [email protected] to get your very own custom Health Benefits Analysis today!
Important Notice: Remodel Health does not intend to provide specific insurance, legal, or tax advice. Remodel Health always recommends consulting with your own professional representation to properly evaluate the information presented and its appropriate application to your particular situation.