Health Insurance For Small Business Owners – Guaranteeing Protection

By: Lynn Vandyke

Health insurance is a topic that never ceases to be discussed. The high cost of medical expenses will not let the topic die a comfortable death. There are a lot of people that have no health insurance and small business owners are in that number.

When every dollar counts, health insurance is one of the items that is frequently excluded from the budget of a small business. The owners just hope that nothing catastrophic happens until insurance can be budgeted.

The government and health insurance companies have been working for years to remedy that situation. As a result, a variety of health insurance plans are now available to fit any budget.

Robust Business

Insurance is formally defined as guaranteeing protection. That is what a small business owner needs – protection. Many small businesses are heavily dependent upon the owner remaining healthy.

What's good for the goose is good for the gander. Employees need health insurance coverage also for their welfare and the welfare of the business. Maintaining a robust business means encouraging employees to care for their health. This is much more likely if they have health insurance.

Circular Logic

The options for health insurance have significant differences. The option chosen normally depends upon the cost of the plan and the level of coverage desired by the small business owner.

On the other hand, the actual level of employee utilization often determines annual cost for out of pocket expenditures. Following is a summary of the most common health insurance plans available for small business owners.

- There is health insurance coverage purchased by the company that covers the owners and the employees. This is the traditional fee-for-service. The dollar amount covered for health costs are determined by the amount paid by the owner to a provider based on the number of employees included in the plan. More expensive plans will naturally have lower deductibles and copays.

- In some states there are health insurance plans that cover the owner only. It is the perfect solution for small business owners, especially one with no employees except for the owner.

- Health Maintenance Organizations (HMO's) are private insurers who limit access by members to designated services and doctors. The cost efficiencies are derived the careful control kept on reimbursable expenses.

- Insurance pools offer insurance to people considered high risk and that includes small business owners.

These are the major kinds of health insurance available to small business owners. Additional plans include a Preferred Provider Organization (PPO) or Point-of-Service (POS).

Choosing Coverage That Won't Disappoint

When choosing a health insurance for you or your business, it is important to understand the level of coverage desired so you don't under or overspend. Insurance contracts have a lot of fine print and it can be distressing to discover services you thought you were paying for with the monthly premium are not covered.

- If an HMO or PPO, make sure there are enough service providers in the area

- Make sure that the plan covers high maintenance diseases such as diabetes if possible

- Verify that the provider is reliable and pays its claims in a timely manner

- Have a clear understanding of prescription coverage

- Have a clear understanding of procedures that are excluded

- Decide if you want to include dental and vision coverage

It is important to shop around for coverage even if it is to cover only one person. There are a lot companies entering the health insurance market that are not credible. Medical costs can literally bankrupt you or an employee if coverage is inadequate. It is worth spending the time to study the options so that there are no disappointments later.

Small Business Health Insurance To Cover Your Employees

By: Steve Ferguson

Health insurance is a grave concern in America. With the cost of healthcare on the rise, being without health insurance is worrisome, especially when it comes to children. To combat the high price of healthcare, employers offer health insurance to their employees as a benefit of working for a particular business.

When it comes to small businesses, owners are concerned about health insurance. They risk losing qualified job applicants to bigger companies who can offer health insurance in its benefits packages. Yet, they are afraid of the costs and the complicated nature of health insurance. So many small business owners go without, even for themselves.

But here’s the truth: small business owners can get health insurance for themselves and their employees! As long as there is a minimum of two full-time employees on the payroll, you are probably eligible for group health insurance.

The Benefits of Group Health Insurance for Small Businesses

Of course, healthcare in America isn’t cheap, even if you have health insurance. There are deductibles to pay and co-payments each time you visit a doctor. The premiums itself are on the rise as we speak. However, when you have health insurance, it sure beats paying for medical services out-of-pocket.

So health insurance at least makes healthcare somewhat affordable. As a small business, you can definitely benefit from group health insurance. Not only does it mean healthier, happier employees, but it also means kick backs for the owner of the business.

As the business owner, you’ll have to pay a percentage of your employee’s health insurance. However, the amount you pay is 100% deductible – this means that you’ll owe less in taxes at the end of the year. In addition, you’ll have something very valuable to offer to your employees, something that perhaps your competitor won’t offer.

If you’re an employee of a small business, having group health insurance available means more money in your pocket. Not only do you save on healthcare costs, the amount you pay for health insurance is also deductible.

When a small business offers group health insurance, everyone wins. Everyone gets a deduction when tax time comes around. There is also peace of mind knowing that affordable care will be available if an employee becomes ill. No matter how expensive individual health insurance may be, group insurance is always cheaper, even if the group only includes two full-time employees.

Types of Plans Available

Many types of plans are available when it comes to group health insurance for small businesses. You can opt for PPO, HMO, POS and many others. Vision, dental, and prescription plans are also available for small businesses. It will be up to the owner of the business to offer these plans, and to also give employees the option of choosing healthcare with or without these additional offerings.

The cost of group health insurance will depend on the number of people in the group, what state you live in, the type of coverage, and the insurance company that the business will be dealing with. It will also be entirely up to the business owner to offer health insurance to full-time employees as well as part-time employees. Usually, the more people that are in the group, the better the cost for everyone involved.

Getting Group Health Insurance for Small Businesses

As with car insurance and home owners insurance, you have to check around and get estimates to see who is offering the better price. The insurance company will have a variety of offerings, and will base the estimate on several factors, including the number of people in the group and the type of insurance coverage that will be offered.

The factor that works in a small business’s favor is the fact that no health insurance company is allowed to refuse group insurance to small businesses, unless they don’t meet the criteria. Usually, the criterion is two or more in the group, but other rules and regulations may apply. The standards are set by each state, so this will vary depending on where you live.

For more information on this topic, visit your state’s website or call a health insurance company in your area. When in comes to group health insurance for businesses, some researching and price shopping may be necessary, so be prepared to spend some time. However, there is nothing more valuable than good health – your time will be well spent!