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How Small Business Chooses Affordable Health Insurance For Employees

Armen Hareyan's picture

Small business at some point start thinking if they should offer health insurance to their employees. As a small business owner you have decided to offer it, you may wonder how you are going to find an affordable health insurance plan for employees that is right and is comprehensive. Here are a few things to consider.

Offering affordable health insurance for your group is one of the ways you can attract and retain high-quality employees to help you grow your business. Health insurance helps your employees contain healthcare costs, while giving them peace of mind that they and their families are protected.

There are different types of plans available, each providing different levels of coverage, co-payments and provider services. Some of the most common ones for group health insurance include:

* Fee-for-service (FFS)
* Preferred Provider Organization (PPO)
* Health Maintenance Organization (HMO)
* Point of Service (POS)

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In order to find an affordable and competitive plan, you'll want to do some comparison shopping and research. Rates can vary from one company to the next. A good place to start is online at an insurance comparison site which can provide you several quotes from a variety of health insurance companies. If you have an agent or broker who has helped you get other business insurance, see if they can provide you a quote as well. Also, if you're a member of any business associations check to see if they have any recommendations.

Your state's insurance department should be able to provide you with some valuable information about group health insurance regulations in your state. They can also help you verify that the agent and company you are working with are licensed to do business in your area.

Another option is to offer a business Health Savings Account, or HSA. This is an account that allows employees to contribute pre-tax dollars that can be withdrawn for health care costs. The dollars can be used for purchasing prescriptions, paying copays and deductibles and more. When shopping for quotes on group health plans for your business, be sure to ask about how you could integrate an HSA and what the benefits would be for your situation.

With group health plans employers usually pay at least 50 percent of the premium, while the employee pays the rest. The amount you pay may be tax deductible as well, but check with your tax adviser to be sure.

Justin Scott is a free-lance writer. He writes for LowerYourInsurance.com that provides health insurance quotes and makes comparisons. The site also features tips about saving on health insurance.