Many small business owners make it a practice to constantly look for ways to save money, run their businesses more cost-effectively, and improve the quality of their products or services as well as their companies at the same time.
One way they can often do this is to make changes in small group health plan coverage.
Since the small group coverage market is competitive and the benefits, features, and offerings are constantly changing, it can pay to consider changing small group coverage periodically.
When it is useful to consider changes to health coverage
As the date for open enrollment approaches, employers may be wondering if they should wait until then to make any changes with their current health coverage options.
While you can make changes to your health plan at any time during the year As a business owner, there are compelling reasons to wait. Employer health insurance changes are usually made at the beginning of the plan year, giving your employees time to consider their options during the open enrollment period.
Also, as the Society for Human Resource Management (SHRM) NotesAnd the
“If employers are going to change benefit programs to help employees improve their physical, mental and financial health, they must determine whether the new offerings will meet the needs of the actual workforce.”
Additionally, SHRM suggests that as an organization’s workforce changes, employers should be prepared to add, modify, or – in some cases – even final benefit programs, recognizing that benefits evaluated in the past may not be effective in the future.
Health coverage concerns: rising costs and increasing expenditures
One reason to consider changes is that costs can increase from year to year. Smaller employers Struggling to control these rising costs of health insurance often consider making changes to your existing employee benefits plan.
As we have noted, this is usually a consideration made at the beginning of the plan year and then shared with their employees during the open enrollment period that precedes the start of the plan year
Also as one company pointing toAnd the
“Sometimes, when the insurance company and the doctor/hospital cannot reach an agreement on a contract, the network contract expires. This means that your employees may have to find new doctors or pay out-of-network rates to continue to see a doctor or use familiar facilities. Owners may want to Business is considering switching plans if their employees’ services and treatments are disrupted by a dispute or contract cancellation.”
Some other options for modifying an existing plan when a business owner is looking to control rising costs can include:
- Increase the cost-sharing of their employees (eg, deductions, joint costs, annual maximum out of pocket).
- Develop a new health plan design that places greater financial responsibility on employees such as a deductible health plan or HDHP.
- Implement an employee health program that motivates employees to take steps toward improving their health and well-being.
When you think of changing the coverage of your small group
While we’ve mentioned some reasons to make changes to your company’s existing health coverage plans, there are four main issues that can arise for any small but growing organization.
These can be considered signs that your small business should consider switching health insurance.
Your health plan premiums are becoming too expensive for your business
It’s not uncommon for a small business to be burdened with a high-quality, deductible plan. But if the current insurance company does not have options available to make its plan affordable, the only viable option is to look for a new provider.
Your employees are not happy with their coverage
Offering health plans solely based on the bottom line rather than the total value instead could ultimately result in the loss of some of your most valuable employees for a long time. For example, many yOur younger, healthier employees in general may prefer lower premiums and a smaller plan, while older workers may appreciate greater coverage.
Your business is growing
With business growth comes many changes, which can include switching your health insurance. as a single provider NotesAnd the
“Holding on to an outdated plan that you’ve outgrown could derail your business and frustrate your hiring efforts. A Health Reimbursement Account (HRA) working with your small, healthy team of 8 may be unsustainable for your larger, more diverse workforce. New employee prospects may be turned off from During a substandard health plan. It may be time to consider a fully funded plan with high-deductible and low-deductible options to meet your employees’ needs.”
Better health plan options are available
One of the best ways to stay on top of new and innovative health plan products at the most competitive prices is to work with a broker. Otherwise, you will likely miss opportunities to change to a better and more affordable plan.
Keep in mind that, as a small business owner, once you choose a plan, your premiums are usually locked in for a year. While you can add or drop employees and dependents at any time during that year, your premium will remain the same until the end of the plan year.
JC LEWIS is your local partner for group health coverage
JC Lewis Insurance is a local family owned business based in Sonoma County since 1979, and as expert brokers, we offer health insurance plans for the small business group.
Additionally, our company only offers health insurance plans to a small business group of leading health insurance companies licensed to do business in California.
In addition to being professional, experienced brokers, we are licensed and approved by each of these insurance companies to offer coverage to small group employers along with supplement and prescription drug plans for seniors.
When you’re shopping for health insurance for your employees, or even coverage for vision and teeth, you likely have several of them Questions and concerns.
JC Lewis Insurance Services welcomes you Questions About insurance coverage, we look forward to helping you find the right solution for you and your employees.
