Many small businesses are having a hard time finding qualified people to work. There are many reasons for this, but one is the benefits that businesses are offering are not always what potential employees are looking for. Let’s face it, in today’s world, employers are competing with each other for the top candidates.
Should You Offer Health Insurance to Your Employees?
This is largely dependent on the size of your company's workforce. Small firms on the bigger end of the range (those with more than 50 full-time employees) are required by the Affordable Care Act to provide health insurance.
Health insurance is not required for small enterprises with less than 50 employees. But if you want to be competitive, we recommend that employers offer some level of health and wellness benefits.
It doesn't have to be all or nothing when it comes to health benefits for small businesses. You could, for example, pay a fraction of the health-care costs. You can also provide employer-provided health insurance to your employees solely, excluding their families and dependents.
Employees Who Are in Good Health Are More Productive
According to an eHealth report, 36% of business owners provide health insurance to increase productivity. Employees will have more opportunities to see doctors and stay at work if their health insurance policy is more flexible and comprehensive.
Employees who do not have health insurance are less likely to have yearly physicals or contact the doctor if they become ill. When they become even sicker and have to take more time off from work, this results in a drop in production. These employees are damaging your bottom line by focusing on saving money at the expense of their health.
Small Business Health Insurance Options
Here are some options when searching for employee health insurance:
Contact health insurance companies directly
Health insurance companies will gladly discuss plan options (HMO, PPO, POS, etc.) and coverage. However, we don’t recommend this as you have no representation.
Hire an insurance broker
An insurance broker will help you find the right product for your business. This can include group life and health, dental plans, and more.
Partner with purchasing alliances, associations, or professional employer organizations to purchase health insurance as part of a group of businesses. A good broker can help you find association plans.
When buying from an association, keep in mind that you'll almost certainly have to approach them directly. If you use a broker, keep in mind that he or she may not be familiar with your industry's associations.
Because each association is likely to have a long-standing relationship with a broker or benefits consultant, your broker may not be motivated to seek out these arrangements for you.
If you have no employees, look for individual or family health insurance, or consider setting up an HRA
Cost of Small Business Health Insurance
The cost of providing health insurance should be calculated both financially and in terms of time. If you're paying for a portion of the premium, you'll need to account for it.
There's also the time it takes to find a plan that suits your company's needs, educate your employees about plan alternatives, and complete administrative responsibilities after the plan is set up.
Group Insurance Can Be Better
Businesses purchase group coverage and make it available to qualifying employees and their dependents.
Although most states require at least two members for group plans, certain states allow "groups of one," so verify your local requirements to make the best decision. Group plan often offer better options than individual plans.
Group Health Insurance Strategies
These are the important factors in your overall program. You can have a huge impact on your group health program depending on how you move them.
Here are the aspects you need to look at to come up with a long-term strategy that will help your program achieve long-term success. A reputable agent can help you with all these strategies and provide a cost-effective plan for your business.
Managing and evaluating claims.
Creating a group health plan.
Motivating your staff to be healthy
All compliance regulations are being reviewed.
Taking advantage of the insurance market.
If you want to expand and grow your small business, you'll need to offer health insurance. It can help you attract and retain better personnel, increase productivity by keeping everyone healthy and save money through tax credits and deductions.
Most small businesses go with "small group" healthcare, where the risks are spread out among the employers and employees.
Leap | Carpenter | Kemps Insurance Agency Can Help
Leap | Carpenter | Kemps Insurance Agency can help your company provide a competitive, attractive benefits package without breaking the bank. We have the region’s largest and most experienced team of Employee Benefits professionals as well as access to plans from all the leading providers, including some that are exclusive to Leap | Carpenter | Kemps Insurance Agency
As the Employee Benefit’s Department Manager at Leap | Carpenter | Kemps Insurance Agency, I use my 20 years of insurance expertise and background in Human Resources Management to find the best policies for both business owners and their employees.
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Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
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