Most small business owners will say that the best plan is the most affordable one, but there are three main factors that can influence what you’ll pay when picking a new plan:
Let’s look at each of these in more detail:
First, your premium share is the amount the business must pay toward employees’ premiums. Typically, the business must pay at least fifty percent of your employees’ monthly premiums under a small business health plan, though the percentage can vary by state or plan.
You’re not generally required to contribute toward the monthly premiums of your employees’ dependents, but some employers do.
A second factor that may influence your choice in a plan is the health of your group. How old are your employees? Do they see the doctor frequently?
No qualifying employee will be refused insurance or charged more based on his or her medical condition or history, but these factors may still be important when choosing a plan.
Understanding how health insurance impacts your employees and their families is important and your employees’ needs should be discussed when shopping for a plan.
If your employees see the doctor frequently or use prescription drugs on a regular basis that may affect your choice of a plan.
Choosing plans with higher deductibles and copayments may mean a lower monthly premium, but you’ll want to make sure you and your employees can afford that deductible in case you need medical care.
Finally, the type of plan you choose can play a factor in your costs.
HMO-style plans tend to have smaller networks of doctors and hospitals and so may cost a bit less than some PPO-style plans that allow you more freedom to choose your doctors.
You may also want to consider partially self-funded health plans.
With a partially self-funded plan, you set aside a certain amount of money to pay for employee medical costs, but that money may be refunded to you at the end of the year if it’s not used.
Work with a licensed health insurance agent to learn more about your coverage options and to get quotes that are tailored to your group’s coverage needs and budget.