When you have a limited number of employees, it is optional to provide Group health insurance. But, when the employees are more than 50, it is mandatory to provide them health insurance. However, they should be full-time employees, for you to be bound by this law. When you are worried about meeting expenses, which can happen when you are a new business owner, here are ideas for you to provide Corporate health insurance.
Group Health Insurance Options for Small Businesses
The number of Group Health Insurance is overwhelming. You will be spoilt for choice. The plans vary for each state, and there is no ‘one size fits all’ solution here. The type of organization is the deciding factor for health insurance to provide. Here is the list of options for the small business owners.
Professional Employer Organization
This allows you to outsource tasks like employee benefits. This costs around 2% of the employee’s salary, and it is a reputable option. This is also a good option, as the PEO can also take care of Payroll and other employee management tasks. On the downside, the tasks are done online, and this is not going to suit all the employees.
SHOP Market Place
This is the option provided by the Federal Government for the small business owners to choose the best Group Health Insurance solution. This can vary based on the state you run the business and the size of the business. It is quite expensive in a few states. In a few places, it is quite affordable.
The brokers let you deal with the group health insurance agencies in this option. They can be private insurance companies or the government marketplaces. The cost may differ for different features. You need to pay the premium for having the insurance company’s agent. The best thing about this option is that there are a plethora of options like face to face meetings, and enrolment presentations, which are available. When you are opting for low brokerage options, it means the broker works for a lot of clients. Thus, specialized options cannot be sought.
Perfect Group Health Insurance for your Organisation
When you want to find the perfect option for your group health insurance needs, you may not find the best option. This is because the need of your organization can vary a lot from the rest. So, you need to work out based on the location, size of the business and of course, your budget. In case, you are in a big city, you will be able to get hold of a lot of brokers. If you need to get direct links, it may take a lot of efforts to find the right person.
The best way to lay hands on the best group health insurance plan is to research the different plans. You can first try out what your peers in the industry follow. Get their recommendations, analyze the pros and cons. You can also put in a few hours and check business reviews. Local brokers can help. The next move is to get the quotes from the insurance brokers, agents, or agencies. A wise move is to get quotes from all the 3 options mentioned above. This is mandatory because each option can offer varied quotes for different states and cities.
Points to Consider While Buying Group Health Insurance
- The charges per employee, you would be spending
- Customer service for the organization and the employees
- Would you be getting a dedicated representative?
- Is there a website for the employees to access 24/7?
- What are the online reviews? Are there any bad reviews?
When you speak with the insurance representative, you would be of course speaking about the cost involved. But, this is not the only aspect for you to consider. The main consideration is how your employees would be treated. They should be able to access insurance care with ease.
Be clear with the insurance representative about the number of employees, and if the number would increase in the future. Get a clear picture of the amount of money you intend to spend on each employee. Will you spend extra money on the employees to enable them to purchase an insurance plan? All these put together determines which the best insurance plan for you would be.
What can you reap in Group Health Insurance?
When you offer group health insurance to your employees, the greatest benefit is that you can save tax. ACA makes it illegal for any individual to opt-out of insurance. So, when you offer insurance to the employees, the employees perceive you as somebody who cares about them. You can purchase insurance for you and your dependents when you offer insurance to your employees.
Providing group health insurance to employees if you are a small business owner, offers a lot of perks to them. As a small business owner, you cannot afford to directly deal with the insurance company. You can try out the other options, and ensure you can reap maximum benefits.