In our last post on this topic, we discussed which benefits plans are best for business owner-operators, sole proprietors, and incorporated individuals who want a benefits plan for themselves.
However, a one-person benefits plan may be needed when the business owner doesn’t want or need coverage, for whatever reason, but they do want coverage for one employee.
In this situation, you have two benefits plan options to consider:
1. Healthcare Spending Account Plus (HSAP) Plan
No muss, no fuss. This type of plan is a “defined contribution” plan. The employer sets a predetermined amount annually to be available in the employee’s healthcare spending account plus plan.
An HSAP provides the ultimate in flexibility to the employee to use the funds as they see fit, and total cost control to the employer.
Healthcare spending accounts also have the advantage of being second payor for coordination of benefits. If the employee is already covered under their spouse’s plan, claims will continue to flow through the spouse’s plan, with unpaid amounts to be reimbursed through the HCSA. Unused amounts can be carried forward for one year, allowing families to budget for large expenses such as laser eye surgery or orthodontia, items often uncovered by conventional plans.
SelectFlex is the only conventional style benefit plan we will discuss today. Unlike most conventional plans however, with SelectFlex the employer can choose which benefits to offer. For a one-person plan, coverage includes the mandatory Extended Healthcare and optional Basic Dental and HCSA portions.
SelectFlex was designed to place many of the inflationary components of a benefits plan into the HCSA, giving greater control and rate stability to the employer.
With the right benefits provider, business owners have the flexibility to design a benefits plan that meets their needs – whether they need a customized plan for the groups within their group or a simple plan for just one employee.
>> The Benefits Trust helps successful business owners build a better benefits plan than they can get anywhere else. Contact us today to get started!
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