Usually, small businesses pay more than big firms for similar
group health insurance plans. This is mainly because the smaller
companies lack the purchasing power big businesses have. Nevertheless,
with careful planning and working with a qualified provider, small
businesses can find affordable insurance for their employees.
Consider the Cost Implications
The
first thing that business owners should consider when choosing small
group health insurance is the cost. There is the need to find a plan
that fits in with the business finances and the employees' needs. To
accomplish this, you could seek feedback from your employees in order to
ascertain their specific needs. This way, the business owner will be
able to find a plan that fulfills the employees' needs and adhere to the
budget.
Work with an Experienced Insurance Agent
Once
the small business health insurance needs are determined, it is
essential to get quotes from different companies. The business owner or a
representative from his/her company can consult with insurance agents
from various companies to understand their terms and conditions, as well
as the applicable costs of various plans. In knowing what each company
has to offer, the business owner will be able to choose the best plan
based on his/her budget and priorities.
Currently, the health care
law has a provision for small businesses employing up to 25 people. If
these businesses pay annual wages of less than $50,000 and provide
insurance, they are eligible for tax credits. A CPA will be able to
further explain the tax benefits.
Know the Terms of Each Insurance Plan Available
It
is vital to thoroughly analyze the small business health insurance
plans before signing choosing one. The business owner needs to fully
understand exactly what he is getting for his/her money, and if there
are any hidden costs that may be involved. If, for instance, the monthly
premiums are very low, it is likely that the deductibles are high. This
is the money employees have to pay up front when they get sick or need
hospitalization.
Look for Additional Benefits
Many
insurance providers offer ancillary services, so do not forget to look
for these as well. Options for value-added services include health
coaching, wellness program recommendations and 24-hour nurse advice
lines.
Picking the right small group health insurance plan may
seem like an intimidating task, but educating yourself on various plans
and working with an insurance agent to understand them will give you the
appropriate approach to choosing the right plan for you.
Picking
the right small group health insurance plan may seem like an
intimidating task, but educating yourself on various plans and working
with an insurance agent to understand them will give you the appropriate
approach to choosing the right plan for you.
