As a small business owner, one of the most important things you need to ensure is your own health and well-being. Health insurance is crucial for protecting yourself, your family, and your business from financial ruin in the event of a medical emergency. However, finding the right health insurance for small business owners can be a daunting task. In this blog, we will discuss some tips and tricks to make finding health insurance for small business owners a bit easier.
Determine your health care needs and budget
Before you start looking for health insurance plans, you need to determine your health care needs and budget. You should consider factors such as your age, health issues, and the level of coverage you require. You should also think about how much you can afford to pay for health insurance premiums, deductibles, and copays.
Understand the types of health insurance plans available
There are several types of health insurance plans available for small business owners. The most common types include:
- Preferred Provider Organization (PPO) A PPO plan allows you to see any doctor or specialist without a referral. However, you will pay more for out-of-network care.
- Health Maintenance Organization (HMO): An HMO plan requires you to choose a primary care physician who will coordinate all your care. You will need a referral to see a specialist, and you will be limited to in-network care.
- Point of Service (POS): A POS plan combines features of both PPO and HMO plans. You will have a primary care physician who will coordinate your care, but you can also see out-of-network providers for an additional cost.
- High Deductible Health Plan (HDHP): An HDHP is a plan with a high deductible, which means you will pay more out of pocket before insurance kicks in. These plans are usually paired with a Health Savings Account (HSA) or a Flexible Spending Account (FSA).
Research health insurance providers
Once you have determined your health care needs and budget, you can start researching health insurance providers. You can begin your search by asking other small business owners for recommendations or by using online resources to compare plans.
Some factors to consider when researching health insurance providers include:
- Provider network: Make sure the plan you choose includes doctors and hospitals in your area.
- Customer service: Look for a provider that has good reviews on their customer service and is easy to work with.
- Reputation: Choose a provider with a strong reputation for providing quality health care.
Compare health insurance plans
After you have researched health insurance providers, you can start comparing plans. Look at the premiums, deductibles, copays, and out-of-pocket maximums for each plan. You should also consider the level of coverage each plan provides for services such as prescription drugs, mental health care, and preventative care.
Consider using a health insurance broker
A health insurance broker can help you navigate the complex world of health insurance and find the right plan for your business. Brokers work with multiple health insurance providers and can provide you with a range of options to choose from. They can also help you understand the fine print of each plan and explain the differences between various health insurance providers.
Check for tax credits and incentives
If you decide to shop using the government’s Health Insurance Marketplace you might qualify for The Premium Tax Credit to help alleviate costs. In order to qualify for this credit, you have to file form 8962 with your tax return and meet several requirements such as:
- Household income within a certain range
- File your tax return under any status except “Married Filing Separately”
- Do not be claimed as a dependent on someone else’s return
For more information on this tax credit and its requirements, visit IRS.gov.
The Affordable Care Act (ACA) also provides tax credits and incentives to small business owners who provide health insurance to their employees. You may be eligible for a tax credit of up to 50% of the cost of your employees’ premiums if you have fewer than 25 full-time employees and pay average wages of less than $50,000 per year. You may also be eligible for other tax incentives, such as a Small Business Health Care Tax Credit or a Health Reimbursement Arrangement (HRA).
Good health isn’t just important for your personal wellbeing, it’s also crucial for making sure that your small business can continue to thrive and succeed. That’s why finding the right health insurance plan is so critical. Here, we outlined several tips and tricks to help small business owners make the right decision when searching for health care plans. All that’s left now is to make a decision! But don’t worry if you feel a bit overwhelmed—we are here to help. Give us a call at (888)658-2374 or enter your zip code in the bar above to find a plan that works for you and your budget. Together, we can get you one step closer to total peace of mind about your health insurance.