Entrepreneurs looking for and wanting to retain efficient staff can’t help but offer their employees healthcare insurance plans. This is because providing health insurance to your employees encourages them to stay in the job since they can get this kind of benefit. Plus, it would help if you kept in mind that a healthier workforce is equivalent to a productive one.
It is vital to know that obtaining health insurance for your small business can be challenging. Fortunately, there are many options you can choose from and tips you might want to consider in getting health insurance for your small business.
Knowing the Four Elements
As an entrepreneur who runs a small business, it is essential to know that there are four main elements you should know of when it comes to small business healthcare insurance. Knowing these elements is critical to taking control and making the right decisions for your small business. The four elements are the following:
It is vital to keep in mind that if you can qualify for a small business health insurance plan, its coverage is to be provided by the insurance company. This means that your employees, dependents, and you yourself can’t be rejected coverage grounded on any pre-existing medical conditions you may have. In addition, all eligible employees and their dependents can also choose to enroll in the new insurance plan your business provides despite any medical conditions.
Number of Employees
An entrepreneur can get a small business healthcare insurance coverage if they have at least one employee reflected in the payroll. However, some states would count you as both the business owner and an employee. Hence, it would be best to research more on this to make the right decision.
Related: Enhancing Security and Safety Measures in Healthcare Facilities
Remember that when you provide health insurance coverage to your employees, you will be required to pay at least 50% of the monthly healthcare insurance premiums. This is your counterpart as their employer. Moreover, the minimum percentage may vary depending on the insurance company or the state you live in.
Shopping for Coverage
As an entrepreneur, you can look for health insurance coverage anytime without waiting for your current or existing plan to expire. There are multiple choices you can choose from for your small business. In addition, if you’re looking for inexpensive but efficient health insurance plans, you can check out Assurance.com medicare advantage plans.
It is vital to know that when you’ve already bought a plan, you must stay on it for at least a year. During the period mentioned above, you can freely add new eligible employees and dependents or let go of the coverage for employees who choose to quit the job. Furthermore, once the contract ends, you can choose to renew it or shop for a new one.
The Cost of Health Insurance for Small Businesses
The cost of health insurance varies depending on what type your business is. Hence, it would be challenging to estimate how much it will cost.
In a study conducted by the Kaiser Family Foundation in 2018, it was found that an employer often pays an average of $6,896 for a full-time employee in a year. In addition, the research also showed that an employer covers about 80% of the premium. This means that the employees cover the remaining 20%.
How to Save on the Cost
If you want to lessen the cost of your health plans but want to provide an excellent benefit for your employees, here are some ideas you can consider:
Comparing insurance prices is a smart move when it comes to saving money on small business insurance costs. You may be able to reduce the cost by:
- Switching to a new health insurer that offers more affordable insurance prices;
- Selecting a new health plan that can provide cost savings with medical groups and doctors;
- Choosing a different set of plan tiers.
Offer an HSA-compatible Plan
A health savings account, or HSA, is an account that is designed for a long-term period that an employee puts up for their healthcare expenses. It is vital to know that HSAs can only be taken advantage of with certain HSA-compatible insurance plans, which usually have a lower monthly premium and a higher annual deductible.
Furthermore, offering an HSA-compatible plan can help you reduce the cost of premium contributions while still providing great benefits on health coverage for your employees.
Enlighten Your Employees Concerning Life Insurance
Not understanding how health insurance works leads to poor decision-making and costly mistakes. Educating your employees about the importance and processes of health insurance is a low-cost way you can help them. Moreover, this can be done in many ways, like conducting in-office training.
To Wrap It Up
Looking for the right small business insurance can be a lot of work. In fact, it is one of the most challenging parts of running your small business. This is because of the many uncertainties surrounding what kind of plan to provide, how to administer the plan, how much the plan will cost, and whether you’re required to provide health insurance.