Obtaining Small Business Group Health Insurance

Obtaining business group health insurance for a small organization can be costly. Health insurance helps make health care affordable by collective bargaining. A large group joins together, and the group can then negotiate for the best fees and services because of the strength in their numbers. For a large company, this system works well to reduce the cost of insurance per person. With a small company, however, the cost per person can still remain relatively high. This makes obtaining small business group health insurance a challenge, but it can be done through creative problem solving.

Challenges

As a small business, you must offer competitive wages and benefits in order to recruit talent away from large corporations. If you fail to provide benefits, you may find your employees leave your office to work for another company where benefits are an option. Therefore, it is best to provide some type of benefits for your employees. Unfortunately, this can end up costing you far more than it will cost a large organization on a per person basis. Rather than allowing this cost to undercut your profits, consider these options.

High Deductible Options

Offer your employees only high deductible plans. With a high deductible plan, the individual insured is responsible for most of their own health insurance costs. For example, with a $5,000 deductible, few individuals or families will end up making any insurance claims beyond this level. The deductible is far lower than the cost to repair a major broken bone, torn ligament, pay for a hospital stay or care for a woman in pregnancy. Since these costly claims are covered, your employees will have a huge benefit to signing up for the plan. As a group, you will not use the insurance frequently, driving down the group health costs.

Loss Control Considerations

Another way to keep costs low is to implement loss control methods in the work place. This can be anything from offering an ergonomic workspace to providing use of a community fitness facility. Helping your employees quit smoking or lose weight through office support can also reduce the claims you incur due to an unhealthy workforce. Further, a loss control consultant can evaluate your office, particularly if you have a factory or other workplace hazards, to offer solutions to improve safety and reduce workplace accidents.

Employment Agency Alternative

One creative solution to cut costs is to use an employment agency for your health care needs. In this model, your employees are technically employed by a third party agency. That agency handles your payroll, accounting, human resources and benefits services. Since the agency houses employees from many different organizations, it has a much greater collective bargaining power with health insurance companies and providers. Your employees will be offered a deeper discount than you can provide, and they may also receive better services. In return, you pay the employment agency a fee per employee, per month or per year. 

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