Managing group health benefits for a remote team introduces complexity that in-office employers don’t face. When your employees live in different states, open enrollment requires extra planning.
The Core Challenge: Networks Are Geographic
Health insurance networks are built around geographic areas. A plan that works great for employees in New Jersey may be useless for an employee working remotely from Texas — if that carrier doesn’t have a Texas network, your Texas employee has no in-network options.
Solutions for Multi-State Teams
National PPO Plans
Some carriers offer truly national PPO networks (like Cigna’s Open Access or Aetna’s Open Choice PPO) that have broad coverage in all 50 states. These plans are often more expensive but solve the geographic problem cleanly.
State-Specific Plans
If you have clusters of employees in specific states, you may be able to offer state-specific plans in each location. This requires more administrative overhead but can offer better value in each market.
HRA Solutions
Individual Coverage HRAs (ICHRAs) allow employers to reimburse employees tax-free for individual health insurance they purchase on their own state exchange. Each employee buys a plan that works in their location, and the employer sets a defined monthly reimbursement amount. This solves the network problem completely.
Licensure Matters
Not all brokers are licensed in all states. If your team spans multiple states, make sure your broker is licensed to place business in each state where you have employees. Garden State Benefits is licensed in 26 states.
Planning for Remote Growth
If you expect to hire in new states over the coming year, plan your benefits structure with that in mind. It’s easier to build a portable benefits strategy upfront than to retrofit one when you realize your current plan doesn’t cover your newest hire’s location.
Have a remote team? Talk to Paul about building a benefits strategy that works across state lines.