Employee Health Insurance
for
The Small Business Owner

There is good news for small business owners in Alabama, Arizona, Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin.  

Employer-provided health benefits is a big drawing power for small companies, no doubt about it.  Just when small business owners are really scrambling to find health insurance they can afford for their employees, John Alden Life Insurance Company has introduced Health Reimbursement Arrangements (or HRAs).  One big plus to the program is, there is no need to pre-fund an HRA.  This gives employers a real cash flow enhancement over other plans.  

HRAs allow employers to reimburse employees for covered medical expenses up to an established limit. By combining an HRA with a John Alden high deductible health plan substantial savings can be realized.

HRA reimbursements are tax deductible for the employer and are available to any size group.  In cases where a business owner is not eligible for the benefits of an HRA Plan, John Alden allows groups to have more than one type of plan.  For example, they may combine the tax-favored Health Reimbursements Arrangements (HRAs) with the John Alden Medical Savings Account (MSA).  Combining these plans gives savings on two fronts  -- the owner having the MSA Plan, and the employees the HRA

• HRAs also offer business owners greater flexibility in plan design. 

• The MSA Plans have two components -- a high-deductible medical insurance plan and a tax-favored Medical Savings Account. 

• The combination provides coverage for groups of from two to 50 employees 

• Business owners can realize even more savings -- an average of six percent -- by choosing health plans that exclude outpatient prescription drug coverage under the traditional plan and cover them instead with MSA funds. 

• MSA Plans also offer a choice of deductibles, 

• employee portability of the MSA 

• and the ability to roll over unused funds in the account to the following year. 

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• These Funds can be placed in a wide range of investment vehicles, 

• accumulate interest on a pre-tax basis 

• and can be used after age 65 to supplement retirement income. 

Furthermore, All of John Alden's tax-favored options can be combined in different ways to maximize tax efficiency and savings. 

Business owners may obtain quotes on John Alden MSA and HRA Plans now and the plans will be available for November 1, 2003 and beyond for the following states: Alabama, Arizona, Arkansas, Georgia, Idaho, Illinois, Indiana, Iowa, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin. Other states are being rolled out in the coming months. 

Employers can choose among HMOs with

•  co- insurance components, 
• open access HMOs that do not require referrals, 
• and open access Point of Service (POS) plans 
• with varying levels of co-pays, deductibles and coinsurance. 

"This level of choice in standardized plans is really unprecedented for small business," said James Foglio, a New Jersey broker with the Fotek Insurance Agency. "I anticipate that employers could save as much as 15-17 percent in benefit dollars through the streamlined enrollment procedures and flexibility in benefit design these plans offer." 

James Reid, Aetna's head of small group business in the Northeast, explained further: "Aetna's innovation was to provide flexibility and choice through the sheer volume of plans offered, while maintaining the standardized nature of the plans which allows for simple and cost-effective administration."

This level of customization in choices and benefits was previously available only to larger companies who self-insure. 

Small business owners can purchase medical, dental, pharmacy, group life, and disability benefits all from one company. 

Aetna also controls costs by providing one-stop shopping. Aetna's Small Business Service Center exclusively supports small business employers and their agents with advice on products and benefit strategies, assistance with quoting and billing, and employee marketing materials. 

Aetna is one of the nation's leading providers of health care, dental, pharmacy, group life, disability and long-term care products, serving more than 13.0 million medical members, 11.3 million dental members and 11.7 million group insurance customers, as of June 30, 2003. 

The company has expansive nationwide networks of more than 579,000 health care services providers, including nearly 349,000 primary care and specialist physicians and 3,589 hospitals. 

For more information about Aetna, please visit the company's Web site at http://www.aetna.com.