Information about QSEHRA & ICHRA

Navigating Health Insurance in Minneapolis: A Comprehensive Guide

Written by Amy | Jan 23, 2024 3:23:17 PM

As a thriving business hub, Minneapolis, MN, is home to a myriad of companies, ranging from small start-ups to established Fortune 500 corporations. These businesses understand the critical importance of providing quality health benefits to their employees, yet navigating the intricate landscape of health insurance in Minneapolis, MN, can be challenging. 

Whether you're a new business owner striving to attract and retain top talent, or an HR manager of a multinational seeking to optimize the benefits package, this comprehensive guide is designed with you in mind. 

We know that as a business owner, it’s impossible to ignore the ever-increasing expenses associated with health insurance – especially in a city like Minneapolis, MN.  

To make sure you’re providing the best health care to your employees (and being cost-conscious as a business owner) it’s essential to have a solid understanding of the current healthcare market.

By offering clear, in-depth insights into the local health insurance scene, we aim to assist you in making the most informed decisions to safeguard the health and wellness of your team, ultimately contributing to the success of your business.

Understanding the healthcare landscape in Minneapolis, MN

This past year, premiums for full-priced health insurance in Minneapolis increased by an average of 1.4%With average monthly premiums costing around $307, this increase can be a hard pill to swallow – especially for business owners.  

That being said, business owners in Minneapolis are perfect candidates for Health Reimbursement Arrangements.  

Health Reimbursement Arrangements (HRAs) are the preferred option for businesses that are looking for flexible, affordable, and tax-advantaged health insurance coverage for their employees.   

Why? Let’s start from the beginning.

The importance of health insurance 

Health insurance benefits are one of the main factors when employees consider employment opportunities.  When you offer comprehensive, individualized packages you:

  • Emphasize employee well-being. As an employer, it is your social responsibility to demonstrate commitment to your employees’ health. When providing an HRA option, you allow employees to address health issues promptly. Healthy employees lead to a healthy work environment! 
  • Attract and retain talent. The best talent will choose to work for employers who offer quality health insurance. With a competitive job market like Minneapolis, offering a comprehensive, tax-advantaged health care plan will set you apart from other employers.  
  • Increase productivity. When employees feel confident that the health care needs of themselves and their families are being met, they can focus on the job at hand!  Reduced stress levels will result in increased performance and morale. 
  • Get ahead of costly health expenses. By offering health insurance plans that include preventative health care, you minimize costly health expenses down the road. 
  • Maintain legal compliance. Businesses in Minneapolis with more than 50 full-time employees are required to offer health insurance. Aren’t sure where to start? At Take Command, we take all legal compliance concerns off your plate so you can focus your energy elsewhere!  

Health Benefits Options for Businesses in Minneapolis, MN

In the competitive business landscape of Minneapolis, offering attractive health benefits is essential for attracting and retaining top-tier talent. Here are some of the most popular health benefits options businesses in Minneapolis, MN can consider:

  1. Traditional Group Health Insurance

This is the most common form of health insurance. Businesses partner with a health insurance provider and share the cost of the insurance with their employees.

  • Advantages: Comprehensive coverage; boosts employee morale and retention.
  • Disadvantages: Can be expensive for employers; limited choice for employees as plans are pre-selected.
  1. Health Reimbursement Arrangements (HRAs)

HRAs are employer-funded plans that reimburse employees for out-of-pocket medical expenses and individual health insurance premiums.

  • Advantages: Cost control for employers; flexibility for employees; tax advantages.
  • Disadvantages: Can be administratively complex; certain types of HRAs have caps on reimbursement amounts.
  1. Self-Funded Health Plans

In these plans, rather than paying premiums to an insurance company, employers fund their own health benefit plan.

  • Advantages: Potential cost savings; more control over plan specifics.
  • Disadvantages: High risk as the company is responsible for large claims.
  1. Health Savings Account (HSA) or Flexible Spending Account (FSA)

These accounts allow employees to contribute pre-tax dollars to pay for eligible healthcare expenses.

  • Advantages: Offers tax advantages; promotes consumer-driven health care.
  • Disadvantages: High-deductible health plan is required for HSAs; FSAs have a "use it or lose it" policy.
  1. Voluntary or "Supplemental" Benefits

These are non-traditional benefits offered by employers but typically paid for by employees. They include things like vision, dental, life insurance, and more.

  • Advantages: Enhances benefits package; usually offered at group rates.
  • Disadvantages: Additional cost for employees.

Choosing the right benefits plan for your business involves understanding the unique needs of your team and balancing them with the financial realities of your business. Whatever the size of your company or the industry you operate in, there is a health benefits option that's the right fit for your needs in Minneapolis, MN.

 

Exploring Health Reimbursement Arrangements (HRAs) as an Optimal Health Insurance Solution in Minneapolis, MN

A Health Reimbursement Arrangement (HRA) is a tax-advantaged healthcare solution that business owners can offer their employees. Instead of providing a one-size-fits-all all group health insurance plan, an HRA gives employees the option to find the best health insurance coverage that works for them and their needs.  

We’ve created a little cheat sheet below to help you determine whether an HRA would be the best health insurance in Minneapolis for you and your employees!  

There are two main types of HRAs – ICHRAs and QSEHRAs.  

Individual Coverage Health Reimbursement Arrangement (ICRHA)

An ICHRA is the best option for health insurance for large businesses in Minneapolis.

  • ICHRAs don’t have employee size restrictions – they can be offered to businesses of any size.  Both employers and employees benefit from tax-free health care benefits. 
  • When you offer an ICHRA you can also offer a traditional health care plan.
  • ICHRAs are completely employer-funded. This is a great benefit for employees because they don’t need to worry about their own healthcare contributions. 
  • ICHRAs allow reimbursements for individual health insurance premiums and tons of qualified medical expenses.  
  • Employers can individualize an ICHRA to fit the needs of their business and their employees by specifying employee eligibility and contribution limits. 

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

If you have less than 50 full-time employees, you’re eligible to offer a QSEHRA for your small business health insurance in Minneapolis.

  • Similar to an ICHRA, a QSEHRA allows employees to submit reimbursements for individual health insurance premiums and qualified medical expenses. 
  • QSEHRAs are tax-advantaged health insurance options for both employees and employers. 
  • Businesses participating in a QSEHRA cannot offer a group health care plan simultaneously. 

If you’re looking for health insurance for your Minneapolis business, you’re guaranteed to find an HRA plan that will save you money… and headaches!

Weighing the Benefits: HRAs vs. Traditional Group Health Insurance Plans in Minneapolis, MN

Choosing the best health insurance for your business in Minneapolis, MN requires careful consideration of various options. In particular, Health Reimbursement Arrangements (HRAs) and traditional group health insurance plans both have unique advantages that may suit different business contexts. Of course, you’ll need to weigh the benefits of an HRA against a traditional group plan. Here's a comparative look at both to help guide your decision.

Traditional Group Health Insurance Plans:

  • Simplicity in administration: These plans follow a "one size fits all" model which, while limiting in terms of personalization, can be easier for employers to administer since the health insurance coverage is the same for all employees.
  • Broad coverage: Traditional group health plans can provide comprehensive coverage across a range of healthcare services. However, it's worth noting that HRAs by themselves do not guarantee this breadth of coverage.
  • Recognizability: Employees are generally more familiar with traditional group health plans. This familiarity can contribute to a smoother adoption and understanding of benefits. When working with an expert like Take Command, your employees will have a solid understanding of their benefits and will have a plan administrator to answer any questions. 

Health Reimbursement Arrangements (HRAs):

  • Customization: Unlike traditional group health insurance plans, an HRA allows employees to choose the health insurance coverage that best suits their personal needs.
  • Administration: Although HRAs may seem complex, with the right plan administrator, the process can be smooth and efficient. The plan administrator sets up and manages your HRA from beginning to end.
  • Ensuring comprehensive coverage: While HRAs alone do not guarantee comprehensive coverage, a savvy HRA administrator can guide you to ensure your employees have the coverage they need.
  • Employee education and support: One of the requirements of an HRA is having a plan administrator. With expert guidance from a service like Take Command, your employees will gain a solid understanding of their benefits and have a knowledgeable resource to answer any questions.

Weighing these considerations carefully will help you make an informed decision about the best health insurance option for your business in Minneapolis, MN.

Wondering which is best for your company? Click that green button below. 

Health insurance resources in Minneapolis, MN

Yay! You’ve decided to jump ship and join the liberated masses in establishing an HRA for your health insurance plan.  

At Take Command, we guide you through the entire process. From creating your HRA, enrolling your employees, and maintaining your plan, we’re right beside you.  

More specifically, Take Command assists employers by:

  • Managing all paperwork and keeping up with changing policies.  Never again will you find yourself buried under a stack of forms during tax season.  
  • Keeping all protected employee information… protected. 
  • Providing an administration platform that is easy to navigate – saving you time and energy.

Take Command is equally beneficial for employees. They make employees’ lives easier by:

  • Guiding them in selecting the right individualized health insurance plan for them.
  • Finding the best specialists in network making the transition to their new plan seamless.
  • Shopping around for the best prices and coverage options for prescription drugs.

At Take Command, we make it our mission to set businesses and their employees up for success by providing the best health insurance in Minneapolis, MN through a Health Reimbursement Arrangement.

Frequently asked questions about health insurance in Minneapolis, MN

Navigating your options for health insurance in Minneapolis can be overwhelming.  We’ve tracked down some of the most frequently asked questions to make it easy for you. 

When is open enrollment in Minneapolis, MN?

Open enrollment for individual and family coverage runs from November 1 to November 15.  Applications must be submitted by December 15. Coverage is effective February 1.  If you’d like to enroll outside of open enrollment, however, you must provide proof of a qualifying event. 

How many people are enrolled through Minnesota’s health insurance exchange?

In 2023, 118,431 people were enrolled by the end of open enrollment.  

How did health insurance premiums in Minneapolis change for 2023?

Overall, average premiums for health insurance in Minneapolis only increased by 1.4%.  This is down from a 9.5% increase from 2022 when changes were made to Minnesota’s reinsurance program.

Best health insurance in Minneapolis, MN

The thought of finding the best health insurance in Minneapolis for your business can be an absolutely daunting task.  We get it.  Because of this, offering an HRA is arguably the best option for health insurance for your Minneapolis business.  

 

Some of the key advantages are:

  • There are no surprise costs. As an employer, you get to choose annual contributions that work best for your business. 
  • There are tax benefits. All employer and employee contributions are tax-free!  This makes them cheaper than most health insurance alternatives. 
  • HRAs are flexible. HRAs are incredibly flexible.  You have a lot of say in who you offer benefits to as well as the contributions you make each year. 
  • Increased employee satisfaction and retention. When you provide your employees with health insurance benefits that are as customizable as HRAs, you show them that you take their needs into consideration. The flexibility and cost-effectiveness that comes with offering an HRA has been shown to increase employee satisfaction and retention. 

Convinced that an HRA is the best choice for your business in Minneapolis?