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What Business Insurance options are available that pays for health care?

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Health care insurance can be an extremely expensive venture when purchasing business insurance. There have been a couple of attempts by Congress to offer health insurance at a reasonable cost. The first attempt was developed called the Archer Medical Savings Account (MSA) plan. With the MSA plan, Congress put some restrictions on the plan to keep a limit to the number of enrollees to 750,000 participants. The plan never came close to filling up because of the time consuming paperwork, restrictions, availability, and accounting required for a business to participate. While learning from the MSA plan’s unsuccessful nature and to create a plan more effective, the Health Savings Account (HSA) was created in 2004. The HSA takes health insurance and combines it with a tax-deductible savings account for paying health care costs for a business and its employees. The advantage to this plan makes it possible for business that couldn’t afford health care coverage before, now has the opportunity to offer it to their employees.

The up side for businesses that already have a high deductible health insurance plan is the addition of a tax-deductible account that pays for expenses that are not reimbursed. The down side would be if a company’s health insurance plan has a low deductible then the employee will not be so enthusiastic to change the current plan for one that has a high deductible such as the HSA plan that would only benefit the company.

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