Learn what you need to know about affording small business health insurance.
You may be aware that, as an employer with less than 50 full-time employees, you are not required to offer small business health insurance. What you may not know is that group health insurance may be more affordable than you think.
Continue reading to find out how you may be able to afford small business health insurance.
Key considerations on how to afford group health insurance
Here are some key points to consider if you are thinking about whether your small business can afford to offer group health insurance.
- First, consider your budget and coverage preferences, as well as the level of interest among your employees in enrolling in group health coverage.
- Next, think about what type of small business health insurance plan would work best for you and your employees, based on your anticipated level of medical needs.
- What percentage of employee premiums can you afford to pay as an employer? Most states usually require businesses to pay at least 50 percent of employee premiums.
- It is important to remember that your small business can usually deduct the cost of employee premiums from your federal business taxes. You may also be able to qualify for the small business health care tax credit, which could help your company afford group health insurance.
After evaluating these initial questions, you may be wondering what offering small business health insurance will look like for your company in the long-term. For instance, will the cost of group health coverage affect your ability to afford paying or hiring employees? You may be surprised to learn how other small business owners answered this question.
Most small businesses say offering health coverage has not impacted hiring or compensation
According to a recent eHealth study, most small business owners say that offering group health insurance has not harmed their ability to afford hiring and rewarding their workers.
- Over half (53 percent) of the small business survey’s respondents say that sponsoring a group health insurance plan for their employees has not prevented them from offering raises to their current employees or hiring new workers.
- 30 percent of small businesses say that offering health coverage has made it harder for them to hire new workers or increase employee wages.
Overall, a significant portion of small businesses were able to afford offering small business health insurance without having to scale back their hiring or level of employee compensation.
Comparing plans can help you find affordable small business health insurance
While upfront costs are probably one of the first considerations a small business has when thinking about how to afford group health insurance, selecting the cheapest plan isn’t always the most optimal way to save money. Taking the time to compare plans is an important part of deciding on whether you can afford small business health insurance.
For instance, some people may prefer a plan with lower monthly premiums, while other people might be better able to afford a plan with somewhat higher premiums but with a lower annual deductible and a greater amount of contributions from the health insurance company.
eHealth makes comparing small business health insurance plans fast and easy through our free instant quotes. You should still read the group health insurance plan details from the insurance company in order to fully understand the specifications of each coverage option you consider.
Use eHealth to help you decide if you can afford small business health insurance
Although only you can decide whether your company can afford to offer small business health insurance, investing the time to ask the right questions about cost and coverage preferences at the beginning of the process can help you make the best decision.
You can use eHealth’s online marketplace to compare plans from multiple health insurance companies to find the right choice for your business. To learn more about what your options are when it comes to affordable group health insurance coverage, visit eHealth.com today or speak with one of our licensed health insurance agents.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.