Tips for Small Business Owners Shopping for Health Insurance

When going into business on your own, it is hard to look past the
overhead cost you have just sunk into it. There several other
issues that needs to be on the forefront of your business now. As
you hire people to work for you, what are you going to be able to
offer them? In today’s market employers must offer competitive
wages and benefits to attract and keep good employees. Small
business owners who have less than 20 employees are not required to
provide medical insurance but if you want high quality workers, you
better get it. There is a high demand for small business owners to
provide health care benefits. With the rising cost of medical
treatment, most people cannot afford to not have health insurance
and will gladly leave a job that doesn’t off it. Some people prefer
to have a slightly lower wage than not have benefits. When you
offer your employees benefits that save them long-term money, it
makes them want to stay with you and not go somewhere else.

The new trend in the job market is that the low-wage hourly
workers, the people most like to be uninsured, are now being
offered medical plans in their budget ranges. Small restaurant
owners, day care providers, and other small businesses are
realizing that to get good people to stay, they need to offer them
an incentive. Almost all people expect heath benefits today to be
in their benefit packages. This can be costly to you, the small
business owner, because the best group rates are for large
companies with lots of employees. You might find yourself forced to
give a higher premium to your employees, but having the benefit is
better than nothing. Plus even though they pay a higher premium, it
is still much less expensive than a private rate for them. You need
to stay competitive though and not offer something that is truly
different than all other businesses, including large ones. If the
overall cost to the employee is so high, then they might just
decide to go work somewhere else.

Find out what your employees need the most and purchase plans that
fulfill those needs and not a bunch of things they are not
interested in. Most basic plans can cover routine doctor visits,
sick visits, hospitalizations, medications, and emergencies and
still be a reasonable price. You might want to look at what larger
companies offer and see if you can make some of that work for you
and your employees. The playing field is not fair for the small
business owners; premiums are higher and more expensive than for
larger places. But there are many ways to get a good package that
is still reasonable in cost. Make sure you know what types of
coverage is mandatory and what is not. Some states have
requirements on such things like fertility treatments that even
though your employees might not need are a necessity. These types
of necessities are what make it so hard for the small business
owner to provide affordable health coverage.

Don’t despair, there is still hope. There’s no question about it
that small businesses are in a tough spot. You are not powerless
though by any means. There are several options including having the
employee pay more of their own premium, having higher co-pays for
employees, making sure you have an HMO verses a PPO, and also
having the plans be just for the employee rather than offering a
family plan. You can also save money in what type of prescription
drug plan you are going to offer. Many doctors are offering more
medical treatments for correcting diseases and disorders verses
more costly invasive procedures. With higher drug costs and most of
that cost having to be passed to the employee, it might be better
to offer a drug plan then to have that included in the health
package. The employee will pay a very small premium for this
benefit and save 50% or more on their prescriptions. If you decide
to include prescriptions in your over all plan, think about having
higher co-pay at the pharmacy. So, instead of a smaller $5-$10
co-pay you might have it raised to $20-$30 to save money on the
monthly premium.

DISCLAIMER: This information is for educational and informational
purposes only. The content is not intended to be a substitute for
professional advice. Always seek the advice of a licensed Insurance
Agent or Broker with any questions you may have regarding any
Insurance Matter.

Tips for Small Business Owners Shopping for Health Insurance

One Response to Tips for Small Business Owners Shopping for Health Insurance

  1. Very useful information, I will use it in next time THX

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