Why Is It Suddenly Okay to Send My Employees to the Individual Market?


As more employers drop their group health plans, you might wonder why it’s suddenly okay to stop offering health benefits. You know the Affordable Care Act (ACA) has changed the health insurance industry significantly, but what has it done to justify dropping your group plan?

Here’s what’s changed that makes dropping your group plan a smart decision:

  1. No one can be denied. At one point, a move to individual health insurance meant you had to worry about whether an employee with a serious health issue would be able to get coverage. Under the new law, no one can be denied coverage for a pre-existing condition. All of your employees will be able to get individual coverage worry-free.
  2. Tax credits are now available. Some people now qualify for government tax credits based on family size, income, zip code and whether or not their employer offers a group plan. If you drop your group plan, you may give some employees access to government tax credits to help pay for health insurance. For your tax credit eligible employees this means additional financial help and for you it means less money spent out of your company’s pocket.
  3. There are people who can do the administrative work for you. The shift in the health insurance market has led to the creation of health insurance marketplaces like Gravie. We’ll not only help your employees sort through the hundreds of options available to find and buy a plan that fits their needs, but we’ll be here year-round to help with plan management and coverage questions. When your employees come to you with questions, you simply direct them to us.

Though the benefits of the individual market are clear, we know it’s a big and often emotional change. We don’t recommend sending employees into the individual world alone. It can be confusing, complicated and overwhelming. Real, personalized assistance is not only recommended, but available to you and your employees through Gravie.