Georgia employers will soon have another way to offer health insurance benefits without selecting and managing a traditional group health plan for their workforce.
Insurance and Safety Fire Commissioner John F. King announced this week that Georgia Access, the state’s health insurance exchange, is launching Georgia Access For Business, or GAFB. The program will allow employers to contribute a set amount of money toward employees’ individual health insurance coverage rather than purchasing a single group policy for the company.
King announced the initiative alongside Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services.
Under the new program, employers can establish what Georgia Access calls a CHOICE Arrangement. The employer sets a fixed, tax-free contribution toward an employee’s health coverage, and the employee can use that contribution to purchase an individual Affordable Care Act-compliant health insurance plan.
The arrangement differs from traditional employer-sponsored insurance, where a business typically selects one group health plan or a limited selection of plans for its employees.
With Georgia Access For Business, employees instead have greater control over selecting their individual coverage, while employers can establish in advance how much they will contribute toward the cost.
“Businesses are the backbone of communities across Georgia and helping them compete for talent strengthens our workforce and our economy,” King said. “Georgia Access For Business advances our mission to expand access to health coverage for working Georgians while supporting the employers and families who help our state thrive.”
State officials say the model could be particularly useful for smaller businesses that have found traditional group insurance too expensive or administratively difficult to maintain. It could also provide an alternative for employers whose workers have different health insurance needs that are difficult to accommodate under a single group plan.
The program is not intended to replace traditional group health insurance altogether. Instead, Georgia Access is presenting it as another option for businesses seeking more predictable benefit costs and greater flexibility for employees.
“CHOICE Arrangements help employers keep health spending predictable while offering flexible, affordable benefits, but many businesses don’t even know they’re an option,” Oz said. “I applaud Commissioner King for taking a proactive role by giving employers the support they need to evaluate and implement CHOICE Arrangements through Georgia Access For Business.”
Georgia Access developed the program with insurance broker and benefits consultant NFP, CHOICE specialist zizzl health, and health insurance technology company GetInsured by Vimo.
Georgia Access Executive Director Cheryl Gardner said the program could also provide a path for small businesses that have previously been unable to offer health insurance benefits.
“For a business owner, being able to offer health insurance benefits for the first time can be a significant milestone,” Gardner said. “That’s where we see GAFB’s potential to transform how businesses support the people who keep them running. The size of a business shouldn’t stand in the way of investing in its people.”
Georgia Access is Georgia’s state-based health insurance exchange and operates as a division of the Office of Commissioner of Insurance and Safety Fire.
