Small Business Employee Health Insurance Options

Whether you are a small business owner, entrepreneur, or manage a non-profit organization, finding the right kind of small business employee health insurance for your company can be a struggle. Small businesses form the backbone of the US economy, providing employment to millions of Americans. Of these small businesses, nearly 60% do not offer any kind of health insurance programs to their employees, leaving millions of Americans uninsured. A few aspects presented below may help clarify your options:

Coverage Options

Small business health insurance is typically available to businesses and organizations which have 2 – 50 employees and provides medical care for the owner as well as the employees. Alternatively, group health insurance can be provided to members of a group of persons or businesses collectively, like trade organizations or unions. Both group insurance and small business health insurance offer tax benefits by helping to spread the financial risk, which translates into lower premiums and more extensive coverage for the insured. Typically, company contributions to health insurance plans are 100% tax deductible.

Which Health Insurance Company Is Right for You?

When you are in the market for a health insurance provider for your small business, the first thing to do is to check with the Better Business Bureau and the Department of Insurance for your state to find companies with a solid reputation and a good standing with the public and the state. The second thing on the agenda should be to check what kind of plans, premiums and benefits are offered and availability and accessibility of information regarding the plans and benefits available to employees are present in an easy to understand manner, for example, 24 hour help-lines and multi-linguistic options, for minority employees.

Understanding Available Healthcare Options

Choosing the right health plan for you and your employees can be an overwhelming decision, due to myriad of choices available. Care should be taken when conducting a thorough research. ‘Smart Summary’ reports provide a summary of the kind of expenditure incurred by an individual over a period of time to help you reach some sort of informed decision about the plans you should be opting for. Usually health plans are described as Indemnity or Managed Care; with either plan, there is usually a monthly basic premium, part of which is paid by the employer and part by the employee. The major difference in both plans is in the choice of health service provider and the out-of-pocket expense for covered services. As a consumer, you need to talk in detail to your health insurance company to educate you about the benefits available and the right option for your employee base, as well as explore your alternatives.

Exploring Competitive Rates

For small businesses the best way to shop around for competitive rates is to search the web through aggregator sites to get a rate comparison, and then to call up the insurance provider directly to discuss your specific needs and ask for a quote. If you feel that the rate quoted exceeds a reasonable amount, you should check back with the Department of Insurance. Another option is to outsource the job to an insurance broker. An insurance broker will do all the legwork for you and provide a comprehensive breakdown of the service provided and rates offered for various Insurance service providers, so you can make the best choice.

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