iBest Health Insurance

Small Business Health Insurance

If you are running a small business then you will have to stress yourself on employing individuals that will continue working for you for a long period of time. Part of attracting high quality employees is offering benefits that they may not receive at larger businesses. One example of a way you can provide more for your workers is by offering health insurance for all employees.

Health insurance for employees is usually a great incentive for them to apply and stay with your business for a long time. However, it may cause some complications for the owner of the small business as it could cause a financial downswing. If the company’s revenue is not high enough it may not be possible for the health insurance premiums to be covered. The cost of these premiums are also regularly increasing so it makes it even more difficult.

Any small business that can afford to finance health insurance for their employees will benefit a lot from doing so. If you are running a small business and can only afford to pay a portion of the cost for the premiums for health insurance then you have alternative methods as well. For instance, you could deduct a small amount from your employee’s pay checks to help cover the costs of premiums. A small deduction of $20 per check per employee could go a long way towards covering the cost of health insurance premiums for your small business.

How Co-Payments Work
The previously mentioned method requires co-payments to be made by your employees. It is important that they understand that they are only putting a percentage of the costs towards paying for the insurance. In comparison to attaining their own health insurance policy this will be a much more financially beneficial route to take.

Simply put, co-payments are made by deducting a small amount of money from each employee’s pay check. This will be a nearly unnoticeable amount, usually only $15 to $30 per check. The amount that is deducted will depend on a number of factors such as how much is needed to cover the premiums and the frequency of co-payments. Employees will usually be willing to make these co-payments as they are receiving health insurance for an extremely low cost and it eliminates the need for them to cover it as a personal investment.

Combining Groups for Lower Insurance Premiums
If you want to significantly lower the cost of health insurance for you and your employees then you should look for a group to combine with. By combining two different groups to attain the same health insurance you will create a major decrease in premium costs. The more people in a group, the less the insurance will cost per person. If you know anyone else that runs a small business then you may want to discuss this technique as it could be profitable for all parties involved. If you do not personally know any other small business owners then you may still want to venture out to find one to take advantage of the great savings.

Selecting Employees Based on Health Status
One disadvantage of offering health insurance is that there may be some potential employees that will abuse the policy or use it to their advantage. This could be done naturally as many people require frequent visits to the hospital, doctor, etc. However, it could add up a lot so you may want to be selective when choosing your employees so only the ones that are worth insuring will be insured.

A few simple questions related to the individual’s health should be enough to determine their current health status and whether or not they would be a burden if covered with health insurance. Keep in mind that not all employees need to receive health benefits but it may decrease interest if you take away the incentive after the fact.

Health insurance can be relatively expensive for small groups and businesses. If you want to save the most amount of money possible then you will have to try certain methods to decrease the cost of premiums. Require co-payments from employees and combining two groups are both great ways of making health insurance for a small business a lot more affordable. As a small business owner you will want to do some more research and planning before offering health insurance to future or current employees. Ultimately, health insurance is a great benefit for employees and it can be profitable for all parties involved but it can be disastrous if it is not planned out properly.

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