The employees of any company are the life blood of that organization, they need to feel welcomed and appreciated. Getting them insured is part of that. Buying insurance for your company employees may be a tricky affair, let these guidelines guide you to make the best decision for your company and your employees.
Know your costs
Paying for health insurance is one of the biggest costs a small business can face. Make sure you do your research and know what you can afford.
- Get quotes from multiple insurers: Don’t just go with the first insurer you find.
- Consider a group plan: If you have multiple employees, you may be able to get a group plan that will save you money.
- Ask about discounts: Many insurers offer discounts for things like staying healthy or quitting smoking. Be sure to ask about any discounts that may be available to you.
- Consider a high deductible plan: If you’re healthy and don’t use your insurance much, you may want to consider a high deductible plan,you’ll pay less each month, but more if you need to use your insurance.
Offer health insurance to employees as an employee benefit.
While there are some drawbacks to offering health insurance as an employee benefit, there are also a number of advantages.
Perhaps the most significant advantage is that it can help attract and retain good employees. In a tight labor market, good employees are hard to find, and offering them a benefit like health insurance can give your company an edge.
Moreover, most employees value health insurance, and it can be a key part of your company’s overall benefits package. Another advantage of offering health insurance is that it can help keep your employees healthy. Healthy employees are more productive and take fewer sick days, which can save your company money. And, of course, healthy employees are less likely to get seriously ill, which can also save your company money in the long run.
Join a small business health insurance plan
The Affordable Care Act has created opportunities for small businesses to provide health insurance for their employees at a lower cost. One way to take advantage of this is to join a small business health insurance plan. This can be a great way to provide coverage for your employees and their families. There are a number of factors to consider when choosing a small business health insurance plan.
- The first is the size of your business. If you have a small business with fewer than 50 employees, you may be eligible for a federally-funded program called the Small Business Health Options Program (SHOP).
- This program offers a marketplace where you can compare plans and choose the one that’s right for your business. Another factor to consider is the type of coverage you need.
- There are a few different types of health insurance plans available to small businesses. The first is a PPO, or Preferred Provider Organization. These plans have a network of doctors and hospitals that you can choose from.
- The second is an HMO, or Health Maintenance Organization. These plans usually have a smaller network of providers, but they may offer lower premiums and out-of-pocket costs. Finally, you’ll need to consider your budget when choosing a small business health insurance plan. There are
Allow employees to purchase health insurance through a health insurance exchange
If employees purchase insurance through an exchange, the company could be eligible for a tax credit.Another reason is that it would allow employees to have more control over their health care.
Use health insurance cost-sharing methods, such as a health reimbursement arrangement (HRA)
One way to lower your out-of-pocket expenses is to use a health reimbursement arrangement (HRA) or a health savings account (HSA). With an HRA, your employer sets aside money to reimburse you for qualifying medical expenses. With an HSA, you contribute money to the account, which can be used to pay for qualifying medical expenses.
Offer a high-deductible health insurance plan with a health savings account (HSA)
An HSA can be a great way to save for healthcare costs, but it's important to make sure that you're getting the right coverage. A high-deductible health insurance plan can be a great option for people who are looking to save money on their premiums. However, it's important to make sure that you understand how HSAs work and what you're covered for before you enroll in one of these plans.
The tips above are just a few of the things you need to consider when it comes to health insurance for your small business, there are many other tips and tricks that can be used to lower an employers financial load while buying insurance, consult an insurance expert before taking the plunge.