Small business owners and their employees can take advantage of high-quality, affordable group health plans. But before a business owner makes a final decision about small business health insurance coverage, comparing plans and options is a must.
The question, then, is how to effectively evaluate the cost and coverage of different business health insurance options?
The truth is, when it comes to small business healthcare and health insurance coverage, there are multiple choices and choices. There are various considerations including whether small businesses should offer health reimbursement arrangements instead of the standard group health insurance plan.
So how can an owner or manager best evaluate healthy options for a small business?
Factors in making the best corporate health insurance decisions
For most small business owners, the main concern is cost. For their employees, the main consideration will likely be coverage. Depending on where your business is located, your state will either have a healthy state-run exchange or make us a federally-run exchange.
This is important because employees, including full-time equivalent employees, are not required to benefit from employer-sponsored employee health care. They can, in fact, choose to purchase their insurance independently of their employer directly from the health insurance company or through a federal or state exchange.
Also keep in mind that the Affordable Care Act (ACA) says that companies with at least 50 employees must provide some level of health insurance. If not, these companies are subject to penalties. Small businesses with fewer than 50 full-time employees are not required to offer health coverage options.
However, the vast majority of small businesses offer health insurance benefits to their employees and bear some of the cost of those benefits.
And what are these costs usually?
Evaluate employer costs for employee health coverage
According to data from the Kaiser Family Foundation 2021 Employer Health Benefits SurveyFor small business owners, the average cost is $547 per employee per month and $1,175 per month for family coverage.
What this means is that in 2021, if your employer has 25 full-time (FTE) employees and 10 of them covered themselves and their families while the remaining 15 chose to participate for themselves only, and the employer contributed about $20,000 per month.
While out-of-pocket costs that include deductibles, coinsurance, and out-of-pocket maximums only affect employees, their monthly premiums are what employees pay to get covered. And although a portion of this is usually deducted from their paycheck, employers usually pay most of the premiums. Thus, business owners will want to calculate upfront how much any given health coverage option will cost them and their employees.
While business owners can also purchase small group coverage directly from insurance providers or through an agent or broker, many find that their costs can be lower if they go through the Small Business Health Options program, or Shop.
Additionally, according to HealthCare.gov, purchasing insurance through the Small Business Health Options Program (SHOP) is generally the only way small businesses can qualify for a business healthcare tax credit.
Employers have two options to enroll in SHOP insurance, through an insurance company or with the help of an agent or broker registered in the store
One helpful technique for assessing business health insurance costs is to work with an experienced broker who understands small and group business health insurance plans.
Why coverage matters when evaluating business health insurance
Offering health care coverage to employees can be beneficial to employers in many ways beyond tax credits and deductions. However, choosing the best deals at the best price is what most employers hope to achieve when it comes to health insurance.
And part of evaluating business health insurance work to do is determining which plans (and carriers) have the best coverage, or provider networks, for your employees.
As did Forbes maleAnd
Major health insurance companies contract with providers of medical services and facilities such as hospitals. These contracts specify how much providers charge and may set requirements for providers, such as requiring them to meet a minimum level of quality of care.. small network It may result in employees needing to find a doctor which leads to additional out-of-network costs. “
Many insurance providers only provide services in certain states. Those that are national carriers often have limited coverage in different regions.
In addition, “coverage” can also include the range of services covered by the plan option. In other words, assess the health care services offered in addition to the basics covered by most plans.
HealthCoverageGuide.org, for example, pointing to that these questions must be answered when evaluating coverage,
What services does Plan Cove provide?s? You’ll need to make sure that plan benefits include the services that are most important to you and your employees. (Also keep in mind that, typically, the higher the coverage, the more expensive the plan will be.)
What doctors and hospitals can participants use? Managed care plans usually limit participants to a network of providers and charge more if participants visit out-of-network providers.
In addition to issues of cost and coverage, offering health coverage options entails knowing what types of plans are available and which ones best fit the needs of a company’s employees. Since the specifics of any plan will vary depending on the type—and from provider to provider—it’s often in the business owner’s best interest to consult with a reputable insurance agent or broker before finalizing a business health insurance offer.
JC LEWIS INSURANCE SERVICES AND HEALTH INSURANCE FOR YOUR COMPANY
JC Lewis Insurance Services specializes in assisting companies with small group health insurance.
With over 50 years of experience and offering only the best health insurance plans, we are more than able to help you evaluate your health insurance options. At JC Lewis Insurance Services, we only work with the best health insurance companies that are licensed to do business in the states in which we operate.
As a small business, we are a family owned and operated health insurance agency located in beautiful Santa Rosa, California. Having operated as a small business for nearly five decades now, we understand the unique needs and challenges small business owners face. In addition to being specialists in finding and administering small business medical insurance plans, we are also authorized and approved by every insurance company we represent.
So whether you’re considering small group health insurance for you and your employees or are simply looking to make changes to your existing plan, we welcome your questions and look forward to addressing your concerns.
JC Lewis – Make us your partner of choice to help you make the right decision and find the right solution for your health coverage needs.