Do you have your own business but don’t offer health insurance to your employees because you think you can’t afford it? Well, here’s the good news!
Health insurance for small business employees is a pressing issue. Approximately 45 million US residents do not have health insurance. Of these, about 20 million are employees or relatives of an employee of a company with 50 or fewer employees. In companies with more than 50 employees, more than 96% of employees have health insurance. For small businesses, this figure is only around 43%.
What explains this phenomenon? You hear over and over again that employee medical insurance is one of the biggest costs a business owner faces. But what are these costs? The business owner must pay a percentage of the individual employee bonus. Generally, this percentage ranges between 25% and 50%. If the employee’s family members are covered, the employer may not choose, but is not required to pay a percentage of these premiums.
You can afford to offer health insurance to your employees. You don’t have to be a large multi-million dollar corporation to offer health insurance to your employees; you just need to know a few simple tips.
- Look for insurance companies that specialize in providing health insurance to small business owners and their employees. It is not necessary to search for insurance companies that only sell health insurance to small business owners and their employees, but it is best to only search for those who are familiar with the health insurance needs of small businesses.
- Talk to these insurance companies about their group rates. Some insurance policies require the small business owner to pay all costs, while others require the small business owner to pay a portion of the costs. With the help of an insurance company agent, you can calculate your budget and the type of coverage you can offer your employees.
- Discuss with these insurance companies the different types of policies you want and can offer to your small business employees. You can offer a fee-for-service plan, a health maintenance organization (HMO) plan, or a preferred provider organization (PPO) plan. Each individual plan gives you different flexibility regarding your small business budget.
Therefore, as a small business owner, you can offer health insurance to your employees. You just need to know what steps to take and who to talk to about your financial needs and capabilities. Research insurance companies that specialize in helping small business owners obtain health insurance for their employees, analyze group rates, and decide what plans you can offer your employees.
