Options for Small Businesses

The federal government recently passed the American Rescue Plan Act of 2021, which was signed into law by President Biden on March 11, 2021. Your employees may be able to get more savings and lower costs on Marketplace health insurance coverage due to the American Rescue Plan Act of 2021. 

What does this mean for you 
as a business owner? 

It means more options for your business. Generally, if you run your own business and have no employees, or are self-employed, your business won’t qualify for group coverage. You can purchase qualified health coverage through the Marketplace.  Even if you have 1099 employees, we can help enroll each 1099 employees individually as well. 

With an Individual Marketplace plan, you can:

  • Find coverage for yourself and your family
  • Access premium tax credits and other savings, if you qualify

Options for Your Employees' Health & Dental Insurance

If you have 1-50 employees, you can setup one of the following health benefit options: 

1. As a traditional group insurance plan under the Marketplace SHOPS program or New Jersey’s Small Employer Health Benefits (SEH)

Traditional group health insurance plans are complex, overpriced, and rigid. Not to mention, it's challenging to find the right plan that fits all of your employee's health care needs. Enrolling in a SHOP plan is generally the only way for a small business or non-profit to claim the Small Business Health Care Tax Credit. You may qualify for the Small Business Health Care Tax Credit. It could be worth up to 50% of the costs you pay for your employees' premiums, or 35% for non-profit employers.

2. As a voluntary group insurance plan. 

You can offer your employees various insurance plans where they pay for individually. This is the most cost effective for employers who can't afford a traditional group insurance plan. Employers must contribute at least 50% of the cost of premiums for all full-time employees who enroll in SHOP coverage.

3. As a Health Reimbursement Arrangement (HRA). 

These arrangements allow for a tax savings for you as an employer. A health reimbursement arrangement is a tax-advantaged benefits solution that allows employers to reimburse their employees for qualified health costs or individual insurance premiums. For many employers, a Health Reimbursement Arrangement (HRA) is an excellent alternative to group plans.

There are several types of HRAs.  Pathways Insurance Agency can assist you with setting up the two most common arrangements: ICHRA and QSEHRA.



What are the types of Health Reimbursement Arrangement (HRA)?

There are several types of HRA. Here at Pathways Insurance Agency, we specialize in assisting small business owners with the ICHRA & QSHRA:

ICHRA stands for Individualize Coverage Health Reimbursement Arrangement. We pronounce it “ick-rah”. This HRA type allows employers of all sizes to reimburse their employees for their individual health insurance premiums and other qualified medical expenses. 

QSEHRA stands for Qualified Small Employer Health Reimbursement Arrangement. We pronounce it “Q-Sarah”. This HRA type is for small businesses and nonprofits with less than 50 full-time employees. It allows employers to reimburse their employees for qualified healthcare expenses outlined by the IRS and/or individual health insurance premiums. 

Employee Benefits Package Options

Once you have decided on which type of health insurance package to offer your employee, you have the opportunity to offer additional employee benifits by the way of ancillary coverages. Talk to one of our insurance consultants here at Pathways Insurance Agency about a quote today!

• Includes life insurance, disability insurance, hospital indemnity plans, major illness coverage (cancer, heart attack and/or stroke), long term care coverage, etc.


• Peace of mind protection 
• Helps to pay for out-of-pocket costs for medical expenses • Protects savings 
• Can offset the cost of deductibles, co-pays, and unexpected expenses not covered by other insurance plans 
• Benefits paid directly to the policyholder or a designated medical provider 
• Choice of insurance plan options and coverage for employees

Interested in 
Long-Term Care (LTC)?

What is LTC? What does it include?

Long-Term Care describes an array of services that are available to people with prolonged illnesses, disabilities or cognitive disorders. LTC services include health, medical, personal care, and social services, as described below.

What does LTC include?

  • Assistance with activities of daily living (ADL's) such as eating, bathing, dressing, toileting, transferring, and continence.
  • Around-the-clock skilled nursing care for those with prolonged physical illness, disability, or cognitive disorders, such as Alzheimer's.
  • Custodial care in an Assisted Living Facility.
  • Homemaker care, Adult Day care, Hospice care, Respite care.
  • Personal care for basic instrumental activities of daily living (IADL's), such as cooking, cleaning, laundry, or bill paying.

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Contact Us

Pathways Insurance Agency
707 Alexander Rd, Bldg 2 Suite 208
Princeton, NJ 08540

Office: (609) 337-4411
Direct/Cell: (908) 285 5946

E-mail: info@pathtoinsurance.com

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