Small businesses face an uphill battle when it comes to providing health insurance. Traditional group plans? Expensive. Complex. Often rigid. Employers get locked into high costs, while employees are left with limited choices. That’s why The Caniglia Agency developed EXHIT—an agile, cost-effective alternative that flips the script on conventional employer-sponsored health benefits.
What is EXHIT?
EXHIT isn’t just another plan—it’s a paradigm shift. Instead of offering a fixed group insurance policy, businesses provide employees with a post-tax wage bonus. Employees then have the freedom to purchase the benefits they actually need: health, dental, vision, accident, or critical illness coverage. The real game-changer? Employees can access premium tax credits (subsidies), significantly lowering their healthcare costs.
Here’s the issue with traditional plans: both the employer and employees shoulder the full premium. But with EXHIT, government subsidies step in. In some cases, they cover a majority of an employee’s health insurance expenses. The result? A more affordable, personalized, and flexible benefits model.
EXHIT vs. ICHRA: Understanding the Options
Some small businesses explore an ICHRA plan (Individual Coverage Health Reimbursement Arrangement) as a way to provide benefits. ICHRA allows employers to reimburse employees for individual health insurance premiums on a pre-tax basis, offering a structured approach to employee coverage.
While ICHRA works well for many businesses, it’s important to weigh all options. One key consideration is that when employees accept an ICHRA contribution, it impacts their eligibility for premium tax credits. For some, this may lead to higher out-of-pocket costs, whereas EXHIT enables employees to take full advantage of available subsidies. Additionally, ICHRA plans require ongoing compliance and documentation, which can add administrative responsibilities for employers.
Both EXHIT and ICHRA offer advantages, and the best choice depends on your business’s specific needs. The Caniglia Agency helps small businesses navigate these options, ensuring they select the strategy that provides the most value to both employer and employee.
How EXHIT Works for Small Businesses
The Caniglia Agency doesn’t just offer EXHIT—we customize it. Our team conducts a comprehensive feasibility study to determine whether this strategy aligns with a business’s financial and operational goals. EXHIT is designed for companies with fewer than 50 full-time equivalent employees—and we make sure it delivers real savings before implementing it.
The Process:
- Feasibility Analysis – We crunch the numbers. How much will tax credits save your employees? How does EXHIT compare to traditional plans and ICHRAs?
- Tailored Strategy – No cookie-cutter solutions. We craft a benefits plan that works specifically for your business.
- Employee Guidance – Confused employees? Not on our watch. We educate them on selecting optimal coverage while maximizing subsidies.
- Ongoing Support – Questions? Adjustments? We provide long-term assistance to ensure smooth benefits management.
Why EXHIT is the Future of Small Business Benefits
- Massive Cost Savings – Employers reduce expenses while employees secure affordable, subsidized coverage.
- Maximum Flexibility – No rigid plans. Employees choose benefits that fit their individual needs.
- Streamlined Simplicity – No excessive compliance paperwork or administrative burdens.
- Expanded Benefit Options – Employees aren’t limited to just health insurance—they can apply their bonuses to a range of coverage types.
Ready to Rethink Health Benefits?
If you’re a small business owner with fewer than 50 employees and tired of overpriced, restrictive insurance plans, EXHIT is your answer. The Caniglia Agency specializes in innovative, cost-effective strategies that put both employers and employees in a better financial position.
At The Caniglia Agency, we believe in options. Whether it’s an EXHIT model, ICHRA plan, or another approach, we’re here to help you navigate the complexities of small business health benefits. Reach out today and take the first step toward a smarter, more sustainable future for your company and your team.
