Providing employee benefits is a question that small business owners toss around constantly. Do you offer them and bite the bullet on cost in order to retain better talent? And if you are going to offer employee benefits, how do you do that without spending a lot of time or exposing yourself or your business to risk?
Let me Health you.
Health Insurance, This one’s a must. When picking a plan, small firms have a choice: traditional health insurance or what’s called ‘managed care.’ Traditional plans typically come with high premiums and a wide selection of doctors and hospitals, while managed care plans carry lower premiums but offer a smaller menu of service providers. Both traditional insurance and managed care plans are sold by Aetna, Blue Cross Blue Shield, United Health Group and Humana, and most states mandate that employers cover at least 50% of the premiums.
Most small businesses lean toward high-deductible plans, which carry lower premiums but force employees to shoulder more of the treatment costs up-front before the insurer kicks in. (Experiment with different premium/deductible ratios, depending on what your employees are looking for.)
Health insurance costs vary depending on company size, industry, and location. Principal Financial says most small companies allot between 10% and 15% of payroll costs for health care. In most states, companies with fewer than 50 employees tend to get whacked based on the demographics of their workforce. Employers with older workers, for example, will pay higher rates.
Naturally, high-deductible plans will be a tougher sell to employees with chronic health issues. Before implementing a high-deductible plan, explain to them that they are far better off under a company-sponsored plan than if they had to purchase insurance on their own in the open market.
What can I Health you?
In order to make a smart health insurance buying decision it helps to understand the value of health insurance and why you need it. It may sound obvious, but many people don’t properly understand the basic purpose of health insurance or how it works. In short, health insurance helps protect self- employed persons and small business owners in the following ways:
Health Insurance protects your finances
It entitles you to discounted rates for medical care: Insurance companies negotiate rates with health care providers. Without coverage, the fee charged for a regular office visit can be much higher, possibly twice as high in some cases.
It shields you from unexpected medical costs: Even if your health plan requires you to pay certain costs out of your pocket, being covered can help save you from bankruptcy in case of injury or hospitalization.
It can also protect you from tax penalties: So long as you maintain qualifying coverage without an unpermitted gap (generally a single gap of up to two months in a year is permitted), you should not face a tax penalty.
Health insurance protects your health
It improves your accessibility to quality care: As a member of health insurance plan community, you have access to a network of health care providers.
It provides you with critical care: When you’re insured you have better access to care for medical emergencies and chronic conditions.
It encourages a healthier lifestyle: You may be more likely to take advantage of regular checkups and preventive care if you know it won’t cost you an arm and a leg.
Health insurance can help protect your business too
It shields your business from personal medical costs: As a self-employed person or small business owner, unexpected personal medical expenses can cripple your ability to run your business. By limiting your personal liability for medical costs, health insurance can help keep your business running smooth.
It helps you to hire and retain the best workers: Employer sponsored group health insurance coverage is a valuable enticement in a total compensation package.
It just a simple thing we should keep in mind that ‘First your health, then your work’.
Take care 🙂