Running a business is a tough job. Running a large business with dozens or even hundreds of employees often has more than one owner who can manage it on their own.
However, despite what non-business owners may think, managing and growing a small business with few employees is a complex and often stressful task in itself. As many small business owners know, doing business in states like California can seem a little more complicated.
One scan, for example, ranked countries According to how “friendly” the state government is with regards to various regulations such as licensing, zoning, employment, tax payment, and HSE requirements. California, Rhode Island, and Illinois fail to earn an F, according to survey respondents for small business owners.
Other considerations play into this perception as well.
In fact, based on some “business-friendly” factors, California is rated as Number 48 out of 50 states In terms of the business tax climate, according to the Tax Foundation’s 2022 State Tax Index. Only New York and New Jersey ranked lower.
All of this points to the fact that while California remains one of the largest areas for providing small business opportunities, one department requires assistance.
This includes finding the right health insurance offers for your business.
Health Insurance in California for Small Business Owners
When it comes to finding and choosing the right health insurance plans for you and your employees in California, the options can be a little overwhelming.
Health insurance, along with vision and quality dental insurance, are high-priority benefits for employees, especially in California. Finding qualified employees is one of the challenges facing every business owner and providing high-quality employee benefits is one of the key elements of presenting compelling offers to potential clients.
But navigating your options from the best health insurance companies that offer health insurance in California can be tricky, time-consuming, and even a little tricky. This is especially true for first-time business owners and those with a small number of employees who are fully involved in the day-to-day operations themselves.
And there are many questions that need to be addressed as well.
HSA vs PPO: What’s the difference?
A common question for owners is to distinguish the typical abbreviations used in the medical insurance industry.
For example, we talk a lot about HMOs. This is simply what is known as the Health Maintenance Organization. In California, Kaiser Permanente is the state’s largest HMO.
according to Healthcare.govHMO is a type of health insurance plan that typically limits coverage to care from physicians who work or contract with HMO. It generally does not cover out-of-network care except in emergency situations.
Another question regarding the difference between HSA and PPO.
A health savings account, or health savings account, is not a health plan but a type of savings account that allows a person to set aside money on a tax basis for use on eligible medical expenses. These non-taxable dollars can be used to pay deductions, co-payments, coinsurance, and some other expenses. However, HSA’s money cannot be used to pay insurance premiums.
An individual can only contribute to an HSA if that person also has a High Deductible Health Plan (HDHP). This is a health insurance plan that usually covers only preventive services before the deduction. Although not as popular as HMO or PPO plans, HDHP offers a low cost health insurance option that can allow a member to pay less for health insurance.
PPO stands for Preferred Provider Organization. Similar in many ways to a HMO, however, it does not require members to choose a primary care provider, or primary care provider (PCP). This means that members can choose to see any doctor or specialist within their network although they are encouraged to use doctors and hospitals within the PPO’s preferred network.
Much like a HMO, members pay an annual deduction before the PPO begins paying some or all of their bills. Members pay a percentage of the bill, often referred to as coinsurance, for covered services, while the PPO pays the remaining balance.
Some distinct differences included:
- You can see the doctor or specialist you want without having to see your primary care provider first.
- You can see a doctor or go to an out-of-network hospital, and you may be covered. However, your benefits will be better if you stay in the PPO network.
- Premiums tend to be higher, and a discount is common.
Let us be your local health insurance partner in California
JC Lewis Insurance is a longtime family business of expert brokers headquartered in Sonoma County. Our mission has always been to provide expert advice and assistance to small business owners throughout Northern California when it comes to group health insurance and group medical plans.
At JC Lewis, we offer only California health insurance plans from the best health insurance companies licensed to do business in California. We are authorized and approved by each of these insurance companies to provide coverage to individuals, families, and employers in small groups.
In addition to these services, we assist with Medicare supplement plans and prescription medications for seniors.
If you are self-employed, or your employer does not offer health benefits, an individual or family plan can be the best option for you, or for you and your family.
When you’re shopping for medical insurance, you likely have many questions and concerns. This is great because we welcome your questions about health coverage insurance and you can be confident that JC Lewis Insurance Services will help you find the right solution.