Getting Health Insurance For Small Business Owners

The cost of health insurance for a small business can be astronomical because you are purchasing such a small amount of coverage. However, when you begin the search to get health insurance, be sure to consider these options to suit your specific needs.

Consumer Driven Health Plans

Consumer driven health plans allow employees to pay small expenses out of pocket from a Health Savings Account. They are usually combined with a high-deductible plan that covers employees for catastrophic losses. These plans can reduce costs because employees exercise greater control over their expenses. Individuals typically spend less over the course of the year by asking questions about the cost of treatment, budgeting and avoiding unnecessary trips to specialists. You can combine this type of policy with an education program. Teach your employees about nurse’s hot lines or 24-hour clinics that can be used instead of emergency rooms.  Encourage employees to use Flexible Spending Accounts to keep funds assigned to medical care tax-free.

Consider Reimbursement

You are not required by law to provide health insurance. Health insurance is a benefit you can opt to give your employees. Each employee may seek independent health care if he or she is not covered at work. In fact, many employers require a length of tenure prior to providing health care. You can still subsidize these costs without providing the insurance plans directly. For example, promise a straight 30% reimbursement on all payroll deductions that pay for independent medical care. Your employees can turn in a statement each month summarizing those deductions. When people see how much their health care is truly costing, they are likely to choose less expensive options. If they elect expensive coverage, they will end up paying more out-of-pocket. You may even structure your reimbursement similar to an income tax. For example, pay 50% of costs up to $300 per month and 20% of costs over that threshold.

Use a Staffing Service

You have the option of bundling your health care offering. Instead of employing your workforce directly, consider contracting with a staffing service. The staffing service can take care of your payroll and tax forms for all employees. The staffing service may employ 300 individuals to your 10.  When your employees are technically employed by the staffing service, the service can bundle their health insurance with a higher number of people. You will see cost savings immediately. You may also enjoy benefits like group employment practices liability insurance or accounting and reporting consultants. 

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