Part of a complete employee benefit package usually includes a health insurance offering. However, health insurance is never an easy subject, especially when you are looking to save money while providing the best possible benefits.
What are the main concerns you should be aware of when making decisions about group health insurance? Here are a few important things to keep in mind.
Group Insurance Trusts
If your small business has between 2-50 employees, you may not have much luck finding group insurance policies aimed at larger businesses. However, you may qualify for group health insurance through an insurance trust.
Many larger health insurance companies will offer insurance benefits to a number of small businesses and combine them all into a trust for form one policy. This allows an insurance company to acquire the numbers needed for their actuarial needs, while allowing small businesses to join the trust and obtain favorable rates on medical, dental, and even disability insurance.
Companies who purchase small business insurance plans may also be eligible to deduct up to 100% of the employer premium contribution. That means you can help pay for your employees’ insurance and reduce your tax burden as well.
Employee vs. Employer Contributions
Check with your state regulations about how much employers are required to contribute toward an employee’s individual premium. Typically it is between 25% and 50%, but you could always choose to contribute more.
Also, if employees want health benefits for family, you are usually not required to contribute toward spouses or dependents, but you may certainly do so as an added benefit.
Encourage Healthy Employees
Insurance companies may increase premium rates year after year based on claims paid. You may be able to prevent outrageous premium increases by encouraging employee wellness. Offer programs like weight loss, smoking cessation, or even rewards for fitness.
Find an Agent
Ultimately, obtaining group health insurance is easiest with the help of a professional. Seek a good group health insurance agent licensed in your state. He or she will have the best resources to help save you money and get the best benefits for your employees.