Like many other aspects of running a business, healthcare costs can become burdensome. And when it comes to decisions and strategies involving small business health insurance, controlling healthcare costs often tops the list. Fortunately, the guidance of experienced health insurance agents can be beneficial in this arena.
Many small business owners choose to offer health options for their full-time employees because they are genuinely concerned about their employee’s health. And offering health insurance in the form of small group health plans and other coverage options is one of the best ways to help them.
SMALL BUSINESSES AND AFFORDABLE HEALTH INSURANCE PLANS
Shopping for health insurance for small businesses is similar to what individuals must do to find and obtain coverage. However, unlike individuals, business owners are not obliged to pay for all employee premiums, for example. But, it turns out that almost two-thirds of small companies do so, for single coverage of health insurance.
One way to save money initially is to opt for HMO plans.
“Small businesses pay less for health maintenance organization (HMO) plans than other types of health plans. Kaiser Family Foundation found small companies pay an annual average of $6,060 for HMO single coverage compared to $6,910 for a preferred provider organization (PPO) plan.”
And an alternative to offering a traditional group health insurance plan is to set up what are known as Health Reimbursement Arrangements (HRAs).
“Certain small employers—generally those with less than 50 employees that don’t offer a group health plan—can contribute to their employees’ health care costs through a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).
A QSEHRA allows small employers to provide non-taxed reimbursement of certain health care expenses, like health insurance premiums and coinsurance, to employees who maintain minimum essential coverage, including an individual Marketplace plan. In many states, QSEHRAs allow small employers to provide their employees additional plan choices without managing group health plan coverage.”
Consulting with health insurance brokers can be critical for decisions of this scope. Be sure that the agent or broker that you choose to work with is experienced with small business insurance and that their agents are licensed properly.
SMALL BUSINESS HEALTH SPENDING AND CONTROLLING HEALTHCARE COSTS
While there are large aspects of healthcare costs and spending that cannot be negotiated nor avoided, there are some steps a small business can take to help control their company’s health spending and healthcare costs.
There are several ways small businesses can control some of their company’s healthcare costs.
Here are some options to consider to both manage healthcare costs while still offering the best possible benefits to your employees:
Evaluate carriers’ provider networks: larger networks often translate into lower costs in the long run. Look to align your provider’s priorities to match those of your business. In other words, look to provide the best possible network for care while lowering you and your employees’ out-of-pocket costs.
Explore premium offset plans. According to Rempp Financial, after out-of-pocket premiums have been paid for a number of years, premiums may be able to be paid by the current values of your policy.
Offer Health Savings Account Compatible Plans. Also known as high-deductible health plans, or HDHPs, these are often set up in conjunction with health savings accounts, or HSAs.
Provide Health Reimbursement Arrangements. An HRA is a health benefit plan funded by employers and reimburses employees for eligible medical expenses. These expenses may include co-pays, deductibles, out-of-pocket costs, and individual health insurance premiums. HRAs are tax-advantaged for both employers and employees.
“Direct primary care (DPC) is a business model that allows primary care physicians to offer their services directly to their patients—without an insurance company in the middle—in exchange for a monthly or annual fee. The membership fee allows the patient to access a variety of primary care, including consultations, exams, care coordination, and some lab services, without paying any additional fees at the time of service.”
While small businesses can work directly with a health insurance company, oftentimes, making use of their state’s health insurance marketplace can provide them with more cost-effective options.
This is a great strategy for reducing and controlling healthcare costs for small businesses.
J.C. LEWIS INSURANCE SERVICES CAN HELP WITH YOUR HEALTHCARE COSTS
We want to be your preferred insurance partner and resource.
We bring more than four decades of experience and continue to offer quality health insurance plans. J.C. Lewis Insurance Services works only with the leading health insurance carriers licensed to do business in the states that we operate in.
As a family-owned and operated health insurance agency located in Santa Rosa, California, we are a small business. And that means that we understand the particular needs and challenges small business owners face. In addition to being specialists in finding and managing affordable health insurance plans for small businesses, we are also licensed and certified by each insurance carrier we represent.
So, whether you’re considering small group health insurance for you and your employees or you’re simply looking to make changes to your existing plan, we understand that you’ll likely have questions and concerns.
We always welcome your questions about health coverage insurance, and you can be confident that we will help you find the right solution for your needs.
J.C. Lewis – make us your preferred partner to help you make the right decision for your health coverage needs.
