With each new year, there are some adjustments and additions in health insurance, and 2020 is no different. Lawmakers, health insurance carriers and healthcare providers continually seek new ways to help policyholders get the most for their money.
As healthcare costs continue to skyrocket, it is more important than ever to keep up with all the latest news in health insurance to keep your employees or yourself covered for a fair price. Some health insurance updates in 2020 may have a direct impact on your business or your own health insurance while others are important to watch to gauge the condition of the industry.
Here are four things you should know about health insurance in 2020:
1. QSEHRA Offers Options for Small Business Owners and Non-Profits
QSEHRA is part of the HRA extended family of group health coverage plans and stands for “Qualified Small Employer Health Reimbursement Arrangement.” Designed for small business owners and non-profit organizations, this plan allows policyholders to pay for household healthcare costs. This can include your healthcare premium, according to HealthCare.gov. The nuts and bolts of a QSEHRA involve giving small business employers the opportunity to designate a fixed amount of money each month for employees to use for health insurance purchases and medical expenses. The best part of all is that these funds are available tax-free.
2. Health Insurance Companies Offer Future Retirees Transitional Coverage Options
One concern for individuals planning for retirement is making a smooth transition from traditional health insurance coverage to Medicare. Companies such as Anthem are providing carefully designed offerings to support Medicare Advantage PPO plans. Such plans offer you the chance to combine your medical and prescription coverage together in one convenient plan. With this type of coverage, you can also select your doctor and other healthcare providers from an extensive existing network, or you can go out-of-network and pay an additional cost. Similar to Medical Advantage HMO plans, Anthem’s Mediblue PPO offers:
- Preventive Services
- Part D (Prescription Drug Coverage)
- Vision and Dental Coverage
- Hearing Aids
- And much more
3. ICHRA Offers More Healthcare Coverage Options to Businesses of All Sizes and Industries
Effective January 1, 2020, the Individual Coverage Health Reinsurance Arrangement (ICHRA) is an alternative to traditional HRA group health insurance coverage options. A significant aspect of the HRA Final Rule, ICHRAs are available to businesses of all sizes and in all industries, offering employers an exciting new option in providing affordable, high-quality healthcare to all employees. The plan reimburses medical expenses, such as payouts for co-payments. When adopting and offering an ICHRA option, employers must provide a 90-day notice to employees to give them the time and opportunity to accept the option and comply with the requirements or opt out.
4. EBHRA Allows Employers to Build a Comprehensive Health Benefits Package
As the second part of the HRA Final Rule, the Excepted Benefit Health Reinsurance Arrangement (EBHRA) offers employers added flexibility in how they want to spend their organization’s healthcare budget. This plan allows employers to offer traditional health plans with $1800 each year allotted to reimbursing employees for certain qualified healthcare expenses. These expenses include premiums for COBRA continuation of coverage, dental and vision insurance, and sometimes limited-duration or short-term insurance.
Health Insurance Is Evolving to Meet a Variety of Budgets and Healthcare Needs
Leaders in insurance and healthcare are paying attention to the market and their policyholders’ and patients’ concerns and needs. The new options available this year allows employers, employees and future retirees the best options to get and keep insurance through a variety of circumstances in uncertain and increasingly costly times in the world of health insurance coverage.