the tax-free stipends scheme to attract employees, particularly when many struggle to rehire. Hooper added, “Employers still want to provide a benefit for recruiting, and I think everyone agrees that we want employers to help with health care, but we really don’t want them negotiating deals. I think if they can give money to employees to go purchase a plan, that’s maybe the better route.”
Claire Brockbank, CEO of Peak Health Alliance said that despite the fact that this new paradigm has been in place for more than a year, still some companies are reluctant to learn more about it. Brockbank said, “In the winter, when most renewals happen and most businesses pick their coverage for Jan. 1, or when a lot of businesses do, I think so many businesses were just trying to keep their head above water with COVID, and they just didn’t have the bandwidth to learn something new”.
Due to the fact that the current timing is poor, and that the scheme is also too fresh, many business owners are reluctant to adopt it. Brockbank said, “Their broker may not know about it. At Peak (Health Alliance), we have preferred brokers that have to go through training on (individual coverage health reimbursement arrangements) so they are able to provide that kind of insight. A lot of brokers have not necessarily made that extra investment. I think that’s a big part of it, too, is that it’s taking until the employer’s broker tells them about it, (so) they’re a little bit apprehensive.”
Brockbank also addressed some common myths about the program, such as the belief that individual plans are not as good as group plans, which she claims not real. Despite their differences in structure, Brockbank claims that the stipends enable workers of the same organization to choose the package that best suits their needs.
According to panelist Adela Flores-Brennan of the Colorado Consumer Health Initiative, this model also provides new approach for workers to be insured. Flores-Brennan said, “It really helps to increase the number of choices that small businesses have for providing health care for their employees”.
