5 Things to Consider before Renewing Your Health Insurance Coverage for 2016

As you begin planning for your company's 2016 health insurance renewals, keep in mind that the Affordable Care Act calls for a 40-percent excise tax starting in 2018 on the value of employer-sponsored coverage that costs more than $10,200 for single plans and $27,500 for family insurance. Here are ways employers can prepare to avoid this tax by cutting costs:

1. Encourage Healthier Living – One way to avoid the excise tax is by adding or expanding a wellness program to help improve employee health. 
2. Adjust Coverage – Some companies have been raising deductibles, or the amount a person has to pay before most insurance coverage begins. This lowers the premium or cost of coverage.
3. Examine Flexible Spending Accounts - Some businesses are beginning to cut back on their use of flexible spending accounts, which can give workers who don't have a consumer-directed health plan a chance to set aside money before taxes for out-of-pocket health care costs.
4. Encourage the Use of Telemedicine - More and more employers and insurers are trying to shave costs by providing telemedicine options that connect people virtually with a care provider.
5. Offer Employees Greater Choice and Flexibility - Some companies are also considering moving their employees to a private insurance exchange, such as The AGC Alternative, in order to offer them more choice in benefit offerings.

For more information about how The AGC Alternative can help lower your health care cost or to get a quote, please visit us at www.agc.org/exchange.  To discuss your company's benefits strategy and learn more, please contact us at 1-800-210-5290.