As a small business owner, one of the most important decisions you’ll have to make is whether to offer health insurance to your employees. This article provides an overview of what you need to know about small business health insurance. We’ll also provide tips on how to choose the right plan for your business. So if you’re considering offering health insurance to your employees, read on for helpful information that will make the process easier.
About Traditional Small Business Health Insurance
Small business health insurance, also known as group health insurance, is available for companies with 2 or more employees. The employer pays a fixed premium cost and can make employees contribute to these costs as well. Employees, and possibly their dependents, are responsible for copays and deductibles.
Employers can purchase coverage through the government’s Small Business Health Options (SHOP) marketplace or through an insurance broker. Here at Group-Health-Quotes.com, we can pair you with an agent or you can compare plans online!
When to Shop For a Plan
Luckily, as a small business, you can shop for health insurance coverage at any time of year without waiting for a special open enrollment period. However, once you select a plan, your premiums are locked in for the next year. During that year you can drop coverage for employees who leave or add new employees and dependents to your plan. At the end of the year, you can choose to renew your coverage or comparison shop for a new plan.
Reasons to Offer Health Insurance
It Can Save Your Business Money
Group health insurance for small businesses can secure a rate lower than what you or your employees would otherwise get on your own. Premiums will be less expensive because there’s more risk covered within one policy.
There are also tax incentives and credits available to employers. Through the Small Business Healthcare Tax Credit, you could get back up to 50% of what was spent towards employees’ monthly health premiums. The tax credit is available for businesses that fit all of the following criteria:
- There are fewer than 25 full-time employees
- The average employee salary is $56,000 or less
- You offer coverage to all of your full-time staff members
- You pay at least 50% of employees’ premium costs
Even if you aren’t eligible for the tax credit, the money you spend on employees’ health premiums could also be excluded from your taxable income, allowing you to still save money.
It Can Save Your Employees Money
According to a study by the Kaiser Family Foundation, nearly half of the American population relies on their employer to provide health insurance coverage. Employees particularly benefit from this arrangement because they are able to purchase policies for themselves and their families at lower prices than if they bought an individual policy on their own.
It Helps To Attract & Retain Top Talent
Health insurance is no longer just a privilege; it’s also essential. With high premiums and deductibles, your employees want the security of knowing they will be taken care of whether illness strikes or not.
According to The Kaiser Family Foundation’s 2022 Employer Health Benefits Survey, over half of all small businesses in America offer health benefits to their employees. If you’re looking to attract new talent, a competitive health plan can help you stand out amongst other companies.
Health Insurance Increases Productivity
Offering healthcare shows employees you care about their well-being outside of work. When their medical needs are being met, it leads to increased productivity and having less interference with work schedules due to sick days.
Health insurance can be a complicated process, but understanding the basics of what insurance entails and knowing how to choose one can make all the difference. It’s important to compare plans and talk with a licensed agent so that you’re fully equipped with knowledge when deciding to offer health insurance as part of your employee benefits package.
We hope this article has helped shed some light on small business health insurance, giving you the confidence to make informed decisions about what’s best for your company. If you’d like more assistance or would like to get started obtaining a free, personalized quote today, reach out to our team – we’re here to help!
Give us a call at (877) 658-2374 or enter your zip code in the bar above to get started.