List Billing Individual Health Insurance Policies to an Employer
List bill is a premium payment method that allows one or more individuals who work for a common employer to have the premiums for individual health insurance coverage deducted from their pay.
By accepting authorization to deduct and remit premiums to the health insurance carrier, it is not your intent, nor is it the intent of the health insurance carrier, to establish any type of employee benefit welfare plan as defined by either federal or state law. In fact, list bills are a billing convenience only and do not create an employee welfare benefit plan as defined by either federal or state law for any of the individuals or their covered family members. Each employee pays 100% of the premium. As the employer, you cannot contribute to any premiums. You are simply facilitating payment of the individual’s personal health insurance premiums through the deduction and list bill process.
Each individual makes an independent decision to choose a specific plan that best fits their individual needs and the health insurance needs of thier family. Because under employer sponsored plans the health insurance plans are limited to typically offering a few coverage option, or most likely just one in a a small group situation, you can choose from hundreds of options that best fit your specific needs.
Employer sponsored health insurance plans are not always the best options, there are many situations when it is better to own your own indvidual policy and have your employer deduct the premiums from your pay. It usually boils down to price and individual health insurance premiums are usually less expensive if:
- You do not need maternity coverage
- You are generally healthy
- Your employer is picking up a small portion of the premium for the comparable group policy
Providing a List Bill arrangment for your employees is increasingly more important as employers have cut thier contributions to the employer sponsored plans, while at the same times the premiums have continutued to go up. Many times it is just simply less expensive for an employee to have in individual health insurance plan, instead of having a group health insurnace plan. Therefore, why not provide al ist bill and allow your employees the convenience of just deducting it from your pay.
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List bill is a great way to cutting cost for the small business when cost get to expensive.
Ever since we have brought this option to the table to for our small business owners for their Las Vegas Health Insurance plans they have cut 20% in salary cost alone, ie When on a companies are on a small group there paying for every one (spread the cost). Now with the list bill every ones on their own individual Las Vegas Health Plan and paying for themselves.
AS you mention i your last bullet, i have not seen employers pick up the tab, we usually lower the premium so much they don’t have to.
Great read,
George D