Choosing the right health insurance for your company is a big deal. It impacts the health of your employees and the health of your business. There are a lot of decisions to make and it can feel overwhelming.
Without the right carrier on your side, your employees might not enjoy all the benefits accruing to them. However, it doesn’t have to be so, regardless of whether you are looking for small business health care insurance or something for a large business. You can start by making a note of what matters. If you break it down, you would be surprised at how much easier it gets.
Know Your Business Needs
One of the first things to do is to determine what your employees and the business needs. It might take some time but you can look at a few things for starters:
The size of your company: Smaller companies may want more flexibility and options for a good price, while bigger companies may look for more comprehensive coverage. That may save you some money if you have a small business.
The average age of your employees: A younger, healthier group may want a plan with lower premiums and higher deductibles. On the other hand, an older or sicker group may want a plan that covers more and has less out-of-pocket costs.
The type of product or service you offer: What your business does can also affect which health plan you should get. For example, if you run a high-risk business, you may want a plan that covers work injuries.
Understand the Different Types of Health Plans
Every plan has its advantages and disadvantages. Knowing what’s out there can help you make your decision. Here are few plans to keep in mind:
Health Maintenance Organization (HMO): HMOs usually cost less but employees can only see doctors in their network, which is somewhat restrictive.
Preferred Provider Organization (PPO): PPOs are more flexible, offering employees more choices. However, the cost is higher and may be a burden on the company’s pockets.
Exclusive Provider Organization (EPO): Like HMOs, EPOs require you to see professionals in their network. However, your employees don’t need referrals to see specialists. This opens up the field for everyone without being too expensive.
Point of Service (POS): POS plans are like an HMO and PPO together. You need a primary doctor, but you can see other doctors for additional costs.
High-Deductible Health Plans (HDHP): HDHPs usually have lower premiums with a catch: they have higher deductibles. Employees typically will have access to a Health Savings Account (HSA) to save money to help pay for medical expenses.
Consider the Costs
Of course, the cost is a major factor when selecting a health plan. You’ll need to find a plan that works for your business and your employees.
Premiums: This is the cost for the insurance. You pay this upfront and your employees will likely have to pay less later.
Deductibles and copayments: This is how much your workers will have to pay for before their insurance kicks in. A high-deductible plan typically offers lower premiums.
Out-of-Pocket maximums: This refers to the most amount of money your employees will pay out of their pockets. When they reach this limit for the year, the insurance carrier takes up the rest of the expenses for the rest of the year.
Employer contributions: How much will you pay toward your employees’ policy? An employer can handle the entire premium, split the cost with the worker, or require the worker to pay it all themselves.
How much you pay will determine how satisfied your staff will be, which may attract more professionals to your staff list. Click here to find out how much health insurance costs.
Check the Coverage and Benefits
Not all plans will cover the same care, so you’ll have to pick one that fits the needs of your workers.
Essential health benefits: Does this include the necessary benefits that all health plans must provide, including emergency care, hospital care, and prenatal care? You must determine this or discuss it with the provider before deciding.
Added benefits: Will the plan include extras, like dental and vision care or a gym membership? These jewels may add to an employer’s overall cost, but happy workers are generally more effective and extra benefits contribute to this.
Prescription plans: Will the plan cover the medications you expect an employee and their family might need?
Network providers: Are the doctors and hospitals an employee prefers covered by the plan? Often, healthcare is cheaper if an employee uses a provider who is within the given network. If they go out, they’ll have to pay more from their pockets, making it more expensive.
Follow Legal Requirements
Do your best to stay within the boundaries of the law when selecting or presenting a health plan. If you have 50 or more full-time workers, you have to provide a plan that meets with ACA requirements or you may face a penalty.
State-by-State options: There are specific state plans, too, so make sure to understand what’s required where you operate.
Tax Pros and risks: There can be tax advantages or penalties based on the care you pick. For example, some smaller businesses may qualify for a small business tax credit if they put a plan in place, provided they meet all the requirements.
Get Employee Input
You want to make sure your plan says before purchasing to ensure your plan is right for employees.
Surveys and reviews: Ask your employees about the care they need and want. That way, you can provide a plan that will most likely meet their needs.
Educate and engage: Once you decide on a plan, you’ll want to offer some explanation on how the care works. This information can help your workers get the care they need.
- Review the Plan Each Year
The needs of your business and employees change with time and tasks, depending on the type of business you run. So, take the time to assess your health plan annually.
Monitor how the plan is working: Make sure that the plan is providing for your business and that employees are content. If not, it may be time to seek alternatives.
Look for new plans: Every year, new health insurance options become available. Be sure to stay in the know so your business has the best plan in place.
Bargain for better terms: Health insurance companies need to earn your business. If you feel you need something more out of your insurance company, ask the right questions and make changes where necessary. Plans should be fluid to accommodate your business’s needs.
To learn more about insurance for businesses, check out this resource: https://www.maine.gov/.
Conclusion
Picking health insurance for your business doesn’t have to be difficult. Know what your business needs and the available plans, assess the costs, secure good coverage, comply with the law, engage workers in the conversation and review plans annually.
That way, you will discover the ideal health insurance for your business, whether big or small. Not only will it keep your employees healthy, but it will also help keep your business healthy.