June 11, 2014 – Minneapolis, MN — Minnesota Health Insurance Agency (MHIA), a Minnesota-based company that works with individuals and groups to evaluate health insurance options, is on the forefront of guiding businesses through their new health insurance options available to them as a result of the Affordable Care Act (ACA).
Since January 1, 2014, employers are no longer confined to group plans because of ACA’s removal of the pre-existing conditions requirement. This opens the door for employers to offer a cafeteria plan through a private health exchange termed a 125 Cafeteria Plan. This plan lets employers decide how much to spend toward each employee’s health expenses, referred to as a defined contribution. That money goes into a 125 Cafeteria Plan on a pre-tax basis, which your employees are free to use toward any individual health plan of their choosing. “Think of it as a 401k for health insurance because it’s the exact same concept,“ says MHIA co-founder Eric Anderson.
Private exchanges, like MHIA, are considered game changers because they can provide the platform and the technology to facilitate health insurance purchases using defined contributions. With the general consensus on healthcare reform beginning to move in a positive direction, it’s anticipated that private exchanges will approach public exchange enrollment levels as soon as 2017. Over the next two to three years most small to large business owners will relook their current plans and transition to a defined contributions model for their health insurance. “Many employers are just beginning to get a handle on what their health insurance plans could look like in 2014 and beyond,” states co-founder Andrew Troje. “For the companies we’ve been able to work with to date, the response to cost savings and options has been highly favorable.”
MHIA has clients who are now saving thousands of dollars each month, upwards of $250,000 per year in one instance. In general, MHIA has seen savings of 30-50% annually for small to large companies’ health insurance plans. Employees are also experiencing this value through improved plans that have more benefits, lower deductibles and lower out-of-pocket maximums.
MHIA works with companies to set up their private exchange and assists in enrolling their employees in an individual health plan. Then MHIA’s trusted third party administrator, TASC, structures the employer’s 125 Cafeteria Plan and takes care of the implementation process. Troje noted, “Because we handle the entire process from review of options to a signed plan for the business and individual, it’s an efficient process. Business owners see the value immediately.”
“We know the plan options offered by providers and work with the company to find the best fit for them. We also set businesses and their employees up with visual, dental, life and long and short-term disability as needed. Our clients definitely appreciate our more holistic approach to health insurance,” says Anderson.
Minnesota Health Insurance Agency (MHIA), a privately owned company, employs licensed insurance agents to help individuals evaluate and select their health insurance options at no cost. Since 2011, MHIA has sold over 2500 policies and continues to provide their clients with high quality service and insurance at the best possible cost.