Small Business Health Insurance
(The easy and affordable way)
Written by
Jessica Huneck is an insurance writer from TrustedChoice.com. She began her writing career in 2011 and has since earned herself a bachelor's degree in English writing.
Small businesses comprise the backbone of the nation. The U.S. has grown into a world power in a short period of time due to the independent, entrepreneurial spirit that many small business owners possess.
Small business owners are busy people who often take on the multiple roles that larger corporations can delegate to individuals. While many small business owners are forced to be a "jack of all trades" and still make ends meet, health insurance options can be one challenge to tackle.
Thankfully, there is help for busy business professionals seeking small business health insurance at an affordable price.
When you work with an independent agent in our network, you’ve got a professional insurance guide on your side. Group health insurance for small business can be frustrating and hard to understand. Let an independent agent help you decide whether offering health insurance is a sound investment for your business.
If so, your member agent can compare a variety of policies and quotes to ensure that your employees have reliable coverage and you aren’t going to go out of business because of health costs. Contact an agent today and get some well-deserved help.
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Small Business Statistics
- The U.S. economy includes 6 million small businesses and 21.7 million self-employed individuals.
- Companies with 1 to 9 employees paid premiums 18% higher than companies with at least 1,000 workers.
- Health insurance premiums for small businesses have risen 113% over 9 years.
- 49% of small businesses with less than 10 workers offer health insurance.
- Small businesses create 75% of net new jobs in a healthy economy.
- 96% of U.S. businesses employ less than 50 people.
Should You Offer Small Business Health Insurance?
Although many small businesses forgo offering benefits because of the costs, offering benefits can actually be advantageous for your business. If you can’t reasonably afford to provide health insurance, don’t offer it because you think it’s a good idea.
If your business collapses due to the cost, your workers will be without insurance anyway. But, if you can afford to offer health insurance, it can be a very advantageous benefit for several reasons, including the following:
- Health insurance protects personal assets: With health insurance, both you and your employees have access to discounted healthcare. Without insurance, procedures can be prohibitively expensive and can even lead those who need the care to avoid the doctor. Health insurance also helps protect against unexpected costs associated with accidents or a sudden sickness.
- Health insurance protects your health: With health insurance, you often have access to a network of healthcare providers who can diagnose an issue that your primary care physician might not be able to address. With preventative care coverage as an additional benefit in many policies, you may find that you and your employees are proactively seeking healthcare and staying more productive as a result.
- Health insurance protects your business: If you get sick, your health insurance is there to pay for medical costs, which can reach sky-high levels if you require an extensive care. Instead of tapping into your personal assets, your health insurance should have a reasonable out-of-pocket maximum. Health coverage also helps you to attract and keep the best workers.
How Does Small Business Health Insurance Work?
As the head of the company, you’re responsible for finding affordable small business insurance and for providing adequate coverage for your employees. By offering health insurance, you’re agreeing to pay a portion of each employee’s premiums.
You could also be responsible for a portion of dependent premiums as well. The employee is responsible for the remaining amount of the premium, but your rates will be at least 50% of each premium.
Depending on the number of employees you have and the state you live in, you can elect either individual and family coverage or small business health insurance coverage. If you can’t afford group coverage, a family plan may work, but only if your business has a small number of employees.
Selecting a Small Business Health Insurance Plan
There are four different types of health insurance plans that you can choose from:
- PPO
- HMO
- HSA-eligible plan
- Indemnity
Choosing the right plan for yourself and your employees is a personal decision, but you must understand the intricacies of each plan to make an informed decision.
If you aren’t sure what’s right for your business, contact an agent. Your member agent can help you analyze the pros and cons of each plan and make a professional suggestion based on your business needs.
Keep in mind that many health insurance plans don’t include dental benefits. If you want to offer dental insurance to your employees, speak with your member agent to see if you should purchase a dental plan in conjunction with your health insurance or if it’s more affordable as a standalone policy.
Speak with an agent about your dental insurance small business needs and any concerns you have.
Save on Business Insurance
Our independent agents shop around to find you the best coverage.
Finding Affordable Small Business Health Insurance
You can spend your valuable time online trying to compare health plans and quotes, but with the impending changes of 2014 due to the Affordable Care Act, you may want to have a professional on your side.
When you work with an independent agent, you have a source of information that can help you find the right group health insurance for a small business.
Offering small business health insurance doesn’t have to be as complicated as it sounds. Just contact an independent agent in the our network to get started.