Things to know about small business health insurance
Running your own business has many challenges. One of the intimidating tasks is finding the best small business health insurance. Understanding the health insurance plans gives the right idea in choosing the apt health insurance for your small business. You would like to start with the budget, but there are other factors to consider too.
Why should you go for health insurance?
When you choose group health insurance for your business, you get tax credits, and it improves the productivity of your employees. It is mandatory to provide health insurance to your employees if you have more than 50 full-time employees. It is essential that you contact the insurance companies directly than working with a broker. You own a small business, and finding out affordable small business health insurance options is what you can expect this way.
Questions to ask
Ask about the documents required, and prepare them. You will find that there are many, preparing them takes quite some time. Documentation is vital for any insurance provider, and you can also choose to go for the government’s health insurance exchange. Once you have provided the information, your provider asks for, get ready to discuss your needs. Find what the available plans are.
They should be able to tell you what is getting covered. For instance, does small business health insurance cover, ER and specialist treatments is one of the important questions. If it covers only general physician visit, you will pay lower. Ask about the out of pocket expenses- deductible, co-pay, and co-insurance. Find the cost-share. Make a record of the answers you get from the insurance company. Analyze what your employees need. When you have a few hundreds of them, ask them to voice out.
A few would be covered extensively as a spouse too. Find out if they need only minimal coverage, and sort out employees based on the preferences.
You can enjoy multiple tax benefits when you opt for group health insurance. The ‘SHOP tax credit’ and other tax deductions save a lot. Health insurance premiums are, in fact, the significant ‘small business tax deductions’. You need to be careful in analyzing the best plan.
This is because you will have to do a lot of paperwork, and every year, it has to be renewed. If you feel this process is strenuous, and you cannot afford the shift of the focus, hiring a broker is necessary. You can also find alliances and associations helping a lot if you feel you need to save time. They come handy when you do not opt for the one size fits all options.
HMO plans, PPO plans, POS, and EPO are the options when it comes to small business health insurance. HMO is perfect for young and healthy people who do not visit the doctor often. If the employees are comfortable in visiting the network physicians, HMO is a great option, and it is inexpensive. For people who would like to shop around for physicians, and don’t mind spending more, PPO is apt.
A combo of both is POS. It lets the patients go to specialists with referrals from PCPs. EPO would let you stay within the network of doctors, but still, help meeting a specialist without a referral.
Analyze the facts and then identify the best plans and best plans for small business health insurance.
James Eckardt is the founder of Peak Advisors Inc., a boutique insurance brokerage on Long Island, NY. The firm has a stellar record of service with three decades of experience in health insurance coverage and hundreds of clients including small businesses, commercial enterprises, sole proprietor-ships and seniors.