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Misconceptions about Health Insurance for Small Businesses



While many think that in the coming years the prices of insurance are going to skyrocket and leave no room for your full-time employees that you will be required to insure, many health insurance companies are stepping up to continue to provide terrific plans for your small company, all while offering competitive rates for the plans and services.

The Small Business Dilemma

Many believe that health care insurance will be a thing of the past for small businesses that don’t have the revenue of larger corporations. In truth, there are many options for small businesses to customize the plan for their employees.

For instance, there is the option for your employees to either be fully insured or to control a self-funding option. Luckily these kinds of plans are not just bundles from big companies that are merely repackaged for your small business but are designed for the specific needs of smaller businesses.

An insurance provider will work with you to develop a health insurance plan design that is the best choice for your business. This Health insurance plan design will be tailored to your business and will be an optimal way to give your full-time employees great benefits and to save you money.

If you think that there health insurance costs are going to skyrocket in the next few years and there is nothing your small business can do about it, there are actually insurance companies out there that are doing everything they can to keep healthcare costs at competitively low prices to give your small business the best deal possible.

Most of us wonder how that is possible, and more and more companies will be dropping full-time employees in favor of part-time employees, but while many businesses have only offered fully insured options in the past, at great expense to them, there are now many different options for the employees to receive terrific benefits through self-funding options.

What is Self-Funding in Health Care?

The self-funding option can save your company thousands, help you keep your full-time employees, and even offer them great benefits at great prices. The self-funding option, also known as the cafeteria or consumer-driven option allows employees to track their healthcare dollars through health plan performance reports to know exactly how and where they are being spent. These health insurance plans are a great option to encourage employees to monitor costs through their own health savings accounts.

The responsibility of this plan will encourage your employees to be more selective about doctors and may even help them realize what real emergencies are! While the money comes directly from their paycheck, they do have deductibles at a rather higher rate than normal if there is a catastrophic medical expense in the future.

Other Options

Another new trend in healthcare is instituting a health and wellness program for your employees, which can be an incredibly effective long-term savings plan for a smaller company. These health and wellness programs will make employees aware of their current health situation by requiring all employees to be tested on the current state of their health. This will make your employees accountable for their personal progress and improvement to increase their blood pressure, exercise regime, nutrition, cholesterol, and weight. The long terms benefits of this plan will keep your employees healthy and make there will save thousands in health insurance costs.

If your current health insurance provider isn’t giving your business the customization and new options that you feel would benefit your company, research your options and consider switching to a different provider that will offer you the perfect health care plan.