A lot has changed for small business when it comes to providing health care.
With this in mind, business coach Laurie Althaus spoke to National Business Consultant Tom Quigley about what business owners can do to significantly cut health care costs using new — and some old — tax laws on her online radio show.
Tom Quigley: We’re showing people here at ClaimLinx how they can reduce their health insurance costs and provide better benefits to employees taking advantage of the new tax law that everyone was blessed with called the Affordable Care Act.
Laurie Althaus: That affordable care act, how does that apply to small businesses?
TQ: Well, every small business owner has the decision to make, whether to offer benefits or not, and there’s a lot of misinformation out there for smaller businesses, those under 50, that they have to offer group health insurance or they cannot offer benefits at all.
What we’re trying to help people understand is there’s better options than what the insurance agents and insurance companies are offering in terms of their product to the consumers. We’re taking advantage of tax laws that have been in existence since 1954, and we’re taking advantage of laws such as the Affordable Care Act and tying it all in to provide a better benefits package that fits small business owners.
LA: So this is all based on a tax law, and you mentioned that the tax law was created in 1954 but then new legislation recently, that was around the health care act. Do those two coincide, or are they separate?
TQ: The tax law that I’m referring to from 1954 is the same tax law that Proctor and Gamble, General Electric and any self-funded health insurance plan in America uses. What people don’t realize that a small business owner can use it also. What we’re doing is showing people how to use it more efficiently than what Proctor and Gamble or General Electric does, using the Affordable Care Act. There’s certain things in this country that nobody should be doing today. But unfortunately they’re being advised to keep doing the same things over and over again. And I believe Mr. Webster and his great dictionary states that’s the definition of insanity.
LA: Yes, we talk about that a lot, don’t we Tom?
TQ: Well, we know that I’m insane. We just didn’t know that the rest of America is.
LA: What do you find as the biggest challenge in selling the solution, or offering the solution?
TQ: Basic math sometimes does not prevail. What we need to focus in on health insurance is this: everyone who owns a home generally doesn’t buy plumbers insurance; business owners who own company cars don’t buy oil change insurance or gasoline insurance. But for whatever reason, they buy those benefits on their health insurance directly from the insurance carriers instead of doing it themselves. And what the law allows, the Section 105, is for the employers to self-fund items they don’t want to buy insurance on. And the law allows it to be tax-free to both the employer and the employee.
Schedule an appointment now to go over your company’s options for saving money.