October 26, 2009
How to Save on Small Business Health Insurance
Finding the right health insurance plan for your small business can be a challenge. You and hundreds of other small business owners are being faced with rising costs, and little protection. But there are ways to help your situation.
The problem
Small business owners are getting hammered by the costs of health care. The businesses that have provided health care for their employees have seen their premiums increase by one fifth over the last decade. Others who want to provide health care simply can not afford it. Although Congress is in a heated debate about how to provide small businesses with better coverage at better prices, as of yet nothing has been done to help small businesses. This issue is of top priority, because over thirty nine million Americans are employed by small business owners. Additionally, many owners expect their costs to rise another 20% over the next ten years. And even if Congress does come up with a health reform bill everyone can agree on, the provisions set forth in the bill won’t take effect until 2013. Who has four years to wait on health insurance?
A couple of things you can do to save money
First, increase the size of your group. Business group health care rates are dependent upon the size of the group. The more people you can add, the cheaper the premium. Make some calls around. See if you can join with other small business owners to form a larger group.
Look around. It is wise not to jump on the first offer made available to you. There are many different plans with many different options. There are also a wide variety of pricing policies amongst these plans. Looking around may require a larger time investment, but it could save wads of cash in the long run.
Use your resources. The internet provides tons of information for you to do your research. Look up which companies provide small business health insurance in your state, and then check more thoroughly into these individual companies. Using a service like eHealthInsurance can save you time and money. It is an insurance agency which allows you to compare and contrast plans from top companies side by side. The service is so good, 60% of users reportedly refer a friend to it. Make inquiries to your state Chamber of Commerce and Department of Insurance, they could provide valuable insight on who to get coverage through.
Keep checking. Plans and rates are constantly changing. What was the best deal last year may be the worst deal this year. It wouldn’t hurt to do an annual evaluation of your health care plan. Beware of switching plans to frequently, because you will more than likely end up switching doctors and networks frequently also.
Involve your employees. Assessing your employee’s needs will give you a better overall view of the business’s health care needs, and empower you to make a more informed decision. Also, if you do end up switching health care providers annually, the employees will feel better about the switches if they had some say-so in the matter.
And finally, the usual methods of reducing insurance costs apply here also. Paying higher deductibles, and/or higher co-pays for doctor visits will reduce premiums. If a plan is unaffordable, you may still have options. With a business HSA, your employees get health care and you control your contribution. This requires an HDHP plan and may not be for every business. If you are more focused on getting a group plan still, you may have to require your employees to contribute more to their premiums. Usually, getting creative and using a combination of these tactics allows you to get the best price and the best coverage for your small business health insurance.
