How to Select the Right Insurance Cover for Your Small Business

As a small business owner, you have a responsibility to yourself to offer the best possible health insurance for your employees. Many small businesses don’t provide their employees with health insurance coverage since they feel that they are at a disadvantage. The Bureau of Labor and Statistics reported that only 55% of small businesses with less than 100 employees offer health insurance. You may not have a large HR department to help you figure things out, but it is still possible.


Why Should You Offer Your Employees Health Insurance?

Other than the ability to guarantee that your employees have access to good healthcare, there are many benefits you get from purchasing a health insurance policy for your employees. Some of these advantages include:

It Is More Affordable For Employees

While many companies offer individual health insurance covers, they may not be as comprehensive as a group cover and are usually costlier. Your employees may have to pay very high premiums to get health insurance for them and their families, which means that you may have to pay more. A group policy, since it covers several people, tends to be more affordable, and includes perks that an individual one may not have.

The Law Requires It

If you have more than 50 employees, you are required by the constitution to provide health insurance for them. This is provided for under the Affordable Care Act, which states that the annual cost of healthcare for an employee should not be more than 9.56% of their income yearly. Also, not providing health insurance can lead to you paying penalties of more than $2,000 per employee.

You Get Tax Credit

If you provide health insurance for your employees, it may help you get a tax credit, meaning that you may pay fewer taxes because you provide medical cover. You must; however, have 25 or more employees who earn no more than $50,000 per year. Your company must also pay upfront at least 50% of the premiums. How much you get off varies, but it can go up to 50%.

How to Offer Health Insurance For Your Employees

Given that you may not have an extensive human resources department to help you navigate through health insurance, you need to know what you are doing. You need a strategy and the following tips to help you make sound decisions about health care.

Select Employees Who Get Insurance Cover

You may not manage to offer health insurance to all your employees, and that is why you need to decide who benefits from it. The law requires that you cover your full-time employees so you should probably start with that. However, you may not have any full-term employees so you can determine who can assume that place by calculating their total work hours in a week.

Find Out If You Can Take a Small Group Policy

The requirements for a group cover vary from state to state, but the least needs at least two employees. Small group policies are specially tailored for small businesses by giving you the best benefits for a fraction of the cost. This allows you to guarantee health care for your employees while not sinking your business with costs.

Pick the Best Insurance Policy

Before selecting the right policy for your company, you need to get into the minor details to know what each one offers. It is a good idea to check all the plans offered by various providers to see how much benefits you and your employees get for the cost. However, do not pay more than you need to, which is why you should use your small business status to get the best deal. Check the finer details such as the hospitals and doctors to ensure that you don’t get an affordable plan because the quality of service is lower.


How to Select the Right Insurance Cover for Your Small Business

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