HAP offers the right funding options for your small business
HAP knows you want to offer your employees competitive health plans that also meet your business’ cost and cash flow goals. That’s why HAP offers our small group customers both fully insured and shared funding options.
Some businesses prefer the predictability of a low-risk, fixed monthly premium cost combined with a full range of employee programs such as health and wellness and chronic condition management. With fully insured funding your business:
- Pays a fixed monthly premium based on the number of employees
- Assumes no financial risk and HAP pays your employees’ claims based on the benefits of your specific health plan
- Pays a different monthly premium only if the number of enrolled employees varies throughout the year
For businesses with as few as 35 employees that prefer lower monthly premiums with some financial risk and greater network coverage flexibility, HAP offers shared funding. With this model your business:
- Pays a lower monthly premium for only the services you need to manage your employee health plan (for example, customer service support, claims processing and billing)
- Is directly responsible for the payment of your employees’ claims, however, may not be subject to all premium taxes under the Affordable Care Act (ACA)
- Has greater flexibility by taking advantage of customized leasing networks
Which way should I fund my insurance?
You may have a choice in how to pay insurance costs for your employees. Let HAP help you find what funding options may suit the needs of your business and help you control your cash flow with the Plan Advisor Tool.Get Started
Who is responsible for paying taxes and fees for fully insured employers?
Fully insured employers are those that offer health coverage for their employees from a health insurance company, like HAP. The employer pays a per employee premium directly to the health insurance company. All health insurance taxes and fees are included in the cost of coverage and paid by HAP. The taxes and fees may display on the invoice as separate line items or embedded in the premium, based on the employer’s preference.