Best Health Insurance Plans For Your Employees

If your business is growing, you need insurance. Not only can the right insurance package help attract better employees, but you can even save money thanks to tax credits and deductions. Legally, you only have to offer insurance if you have 50+ full-time employees, but it’s still worth pursuing insurance for the sake of your employees’ health. 

Your team counts on you to provide for them. Insurance shows you care about their wellbeing, and that you want to ensure they’re protected during a medical crisis. The state of healthcare in this country is undoubtedly confusing, and that scares a lot of new entrepreneurs away from offering insurance benefits. This guide will tackle this complex topic and shed light on the best health plans for your employees. 

Options for Small Businesses

If you operate a business under 50 employees, it’s understandably intimidating to approach the insurance marketplace. While big businesses have a lot of resources available to them in order to accommodate large numbers of employees, this isn’t the case for smaller organizations. Your first line of defense is the Small Business Health Options Program (SHOP) which is a part of the Affordable Care Act. 

SHOP marketplaces are different by state, but they’re designed for businesses with between 1 and 50 employees. The marketplace is simple to use, and you organize the lists by price (from bronze to platinum). You can choose a level that you’re comfortable paying (once again, from bronze to platinum), and your employees can choose any plan within this price bracket. This way, your expenses remain the same no matter what plan they choose. The good news for you is that your business might be eligible for a substantial tax credit under the SHOP plan.  

Private Health Exchange

Similar to the SHOP marketplace, with a private health exchange, your employees can choose a plan that works for them depending on a set amount you agree to cover. This involves picking a private health exchange to work with, and the prices are often more competitive than the state-backed program. 

One drawback of this option is that you likely won’t be eligible for any tax credits. However, many employers like the pricing options, quality of service, and flexibility of a private health exchange compared to the SHOP marketplace. 

Purchase from a Provider

Many business owners feel confident choosing a group health insurance plan directly from a provider. This might save you money, but it also takes a great deal of research. You’ll first need to find an insurer that sells direct, which might not be as easy as you think. From there, you’re directly responsible for initial enrollment paperwork, billing, and even claims. This can become a problem quickly as you grow. 

You’ll also run the risk of choosing a poor plan that doesn’t fit your employees’ needs. Because health insurance is incredibly complicated, you want to give your employees as much freedom to choose as possible. Using an insurance broker can help you purchase a plan that is a better fit, but you’ll need to do the research to ensure you’ve chosen a broker with your best interest at heart. 

Supplemental Plans

A recent AHIP survey revealed that 95% of employees want supplemental plans with benefits like accident, illness, or hospital indemnity insurance. This not only helps employees protect themselves and their families from catastrophic healthcare effects, but they’re also cost-effective. This is a way to offer real value to your team.

Add-on insurance options like hospital indemnity are not affordable, and they might already be an option under your chosen health insurance plan. If you’re serious as a business owner about gaining the trust of your employees, you’ll want to look into these options. For more information, look into hospital indemnity insurance explained by HealthMarkets to see how this benefits both employers and employees.

Providing Options for Employees

While the landscape of health insurance is increasingly complicated, it’s not impossible to navigate as a business owner. You can utilize online resources, brokers, and insurance experts to make a decision that’s right for your team. Offering health insurance is a sign of good faith, and this can be used to attract high-quality candidates to your organization. Show your employees you value their health and wellness by providing employer insurance coverage. 

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