Like Your HSA, but Your Employees Want Their HMO?
Now You’ve Got ‘Dual Options’

Though health savings accounts give you more control and decision-making authority over your health care dollars than ever before, not everyone feels comfortable with the added flexibility–and responsibility required to research and make good health care decisions.

But now if you’re a small business owner, you may be able to save group health insurance premium dollars by setting up a dual option health insurance plan. In short, you can accommodate all levels of your business.

The benefit? You keep everyone happy, with the health care options they desire and save money. While HSA plans are very popular with owners and managers, they don't always hold the same appeal for rank and file employees who prefer the comfort of co-payments (especially when their employers are paying half their premium costs).

Owners and managers, on the other hand, are more willing to self-insure for a portion of their medical expenses in exchange for tax advantages and potential premium savings offered by HSA plans. As we’ve described elsewhere in this website, HSA plans provide a way for employees to pay medical, dental, and other health care expenses with income-tax free dollars.

Here’s how the dual option works: you offer traditional HMO (or PPO) group coverage to those who want it, and HSA benefits to others. Since group HSA premiums tend to be lower than those required by traditional group health insurance plans, you save money while you’re keeping everyone happy with the insurance coverage they prefer.

For Example: The owner of a small business employing five full time employees amended her group health insurance plan into a dual option plan providing both traditional HMO benefits and HSA benefits. Four clerical employees opted for traditional HMO benefits while the employer opted for HSA benefits for herself and family. Monthly net premiums savings for the employer resulting from taking the HSA option: $641.44.

Results vary, but a dual option plan could be worth exploring for you and your business. Questions?
I’m just a click away... ksmith@kensmithinsurance.com.