Protect Your Employees: A Guide to Small Business Health Insurance

Protect Your Employees: A Guide to Small Business Health InsurancePhoto by Miguel Á. Padriñán

Originally Posted On: https://ngpayroll.com/a-guide-to-small-business-health-insurance/insurance-for-small-business/

 

Managing insurance needs can be difficult for small businesses. Small business health insurance is important for both employers and their employees. There are a lot of options available. Choosing the right plan is important for the health of your business and your employees.

Consider this post your guide to all things related to insurance for small businesses. We’re going to cover the most popular kinds of insurance plans, why small businesses should consider offering insurance, and a few tips on how to find the right insurance plan for your company.

Types of Insurance Plans

There are a lot of different insurance plans employers can choose from. Whether you’re interested in Aetna health insurance or Delta dental insurance, there’s a plan that’s perfect for you.

There is no one plan that’s universally perfect for all businesses. The right plan for you is going to come down to coverage needs and costs. If you’re considering coverage for your employees, you may find yourself choosing any of the following plans:

Preferred Provider Organization (PPO) Plans

PPO plans are by far the most common type of health insurance offered by companies. Employees that opt-in to PPOs can choose in-network or out-of-network doctors and hospitals. Employees that choose in-network providers will have a larger percentage of their claims covered by their chosen insurance provider.

Health Maintenance Organization (HMO) Plans

HMO plans are slightly more restrictive. Employees will have to receive healthcare from places and practitioners that are part of the HMO network in order to have their claims covered.

It also isn’t uncommon for HMO plans to require employees to select a primary care physician that will take care of most of their needs, and then only refer them to specialists as needed.

Health Savings Account (HSA) Plans

HSA plans are PPO plans that are made to be used with health savings accounts. A health savings account allows employees to set aside pretax money that can be used for future medical expenses.

Self-Funded Health Insurance Plans

Self-funded insurance plans are unique because employers take on most, if not all, of the cost of benefit claims. An insurance company still manages the claims, but they go to employers for payment instead of employees. These plans tend to be more flexible since they aren’t subject to certain government regulations.

Small Business Health Insurance: Small Investment, Big Returns

According to standards set by the Affordable Care Act, businesses with 50 or fewer employees aren’t required to offer insurance to their employees. You may not be required to offer your employees insurance. However, it’s always a good idea to offer benefits to your employees.

The average employee cares a lot about health insurance. In fact, many employees report that they’d be willing to stay at a job simply because they like their insurance coverage.

Health insurance plans for small business owners can be a lot more affordable than you’d think. If money is your main concern, you can opt to choose a self-funded health insurance plan.

Self-funded health insurance may reduce overhead costs, and also comes with lower premiums and helpful tax breaks. This gives employers a lot more control over their finances and still ensures that employees get the best quality care possible.

 

How to Choose Small Business Health Insurance

When you’re looking for small business coverage, there’s a lot to consider. Aside from the cost to the business and the cost to employees, you have to find a plan that can cover everyone’s needs.

Doing all of that work can seem nerve-wracking, but if you approach it the right way, finding the coverage that works best for you and your business is simple.

Whether you’re choosing insurance for the first time or you’re trying to upgrade your plan, make sure you keep these things in mind.

Send Out a Survey

Are you concerned about finding an insurance plan your employees will like? Instead of guessing what they need, take the time to ask them what matters to them the most in health insurance coverage.

Send out an anonymous survey and ask your employees specific questions about insurance coverage. See if they prefer PPOs, HMOs, or other kinds of plans. Ask them questions about the importance of prescription drug coverage or emergency room visits. You may be surprised by their answers!

Don’t Forget About Ancillary Benefits

Finding an insurance provider that offers benefits like disability insurancedental insurance, vision coverage, and life protection may be the best way to get coverage for your company.

You may get a cheaper rate if you opt in to offer ancillary benefits, so getting more coverage may save you money in the long run. It may also be easier for your employees to deal with one insurance company instead of several to get the coverage they need.

Don’t Only Think About Cost

Money is understandably tight for small business owners. You may not have a lot of money to spend on benefits, but that doesn’t mean that cost should be your only deciding factor when you choose your coverage plans.

There are plenty of things you need to consider when you’re choosing an insurance broker. Take time to think about how many doctors and hospitals are in their network in your immediate area. Think about what you’re truly getting for what you’re paying.

Get The Right Health Insurance Coverage Today

Small business health insurance doesn’t have to be complicated. Once you understand the coverage plans you have available to you and understand what your employees need, you won’t have a problem finding the right coverage for your company.

Whether you need help with business insurance, payroll services, or Human Resources Management, we’re here to help. Reach out to us today so we can give you the and your company they help you need.

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