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Association health plans are a way to group small businesses together for large group pricing, without using a PEO. https://www.dol.gov/general/topic/associati
by kevc 7y ago
Association health plans are a way to group small businesses together for large group pricing, without using a PEO.
https://www.dol.gov/general/topic/association-health-plans https://www.dol.gov/general/topic/association-health-plans
We think other companies offering ICHRA services are a good thing. It's a new option that can help a lot of people, and more vendors will spread the word faster. Savvy works a little differently than the existing solutions.
Instead of a reimbursement-based approach, where employees pay insurance premiums themselves and submit them for reimbursement (like a business expense), we manage the payments for employees. This means the insurance bill is paid by the employer and any extra employee contribution is deducted from payroll. We do it this way so that the employee contribution is also tax-free.
We are also investing heavily in helping employees find the right plan. Behind the scenes our brokers are recommending plans for every employee, and we are building out tools that help employees do things like find a plan with a specific doctor or hospital in network.
- sn 7y agoI saw that it's legally possible to form an association health plan. I don't think there are very many of them, or if there are, they are not public organizations.
- kevc 7y agoYou are right, some of the regulations around association plans were only recently decided, so they are not widespread. We are very interested and working with some experts in the space to better understand how we can leverage them.