Navigating the complexities of health insurance benefits can be a confusing prospect for both small businesses and those who have just started out. However, having such benefits is a necessity in most cases to obtain the type of success you want to achieve as a business owner. Thankfully, even with the confusion it brings at times, the process of getting the right benefits for your employees can be made much easier by working with a knowledgeable insurance agent. Working with the right insurance agent will ensure you have the proper plan for your employees that balances both affordability and coverage to keep your workforce happy and healthy, giving you a critical competitive edge.
Why a Health Insurance Benefits Plan is Important For Your Business
As part of the Affordable Care Act, under the Employer Mandate, all employers who employ at least 50 employees must offer affordable health insurance. In addition, as outlined under the Affordable Care Act (ACA), small businesses that offer health insurance must do so no more than 90 days past the employee’s hire date.
What You Should be Offering
Typically, group health insurance plans provide the following, given that employees can customize their individual plans based on their needs and number of beneficiaries:
How to Find The Right Plan For Your Small Businesses
Here are some of your health insurance options for small business:
Small Group Insurance: In most states, small group insurance is a type of health insurance benefit that is applicable for businesses that employ 50 or fewer employees. In other states, that number can go up to 100. All small group plans are required to meet the standards of the Affordable Care Act.
Self-funded Plans: This type of insurance benefit is more flexible than the traditional insurance plan because it is self-funded. This means it is customizable and isn’t subject to as many regulations as traditional options. You as a business owner would only be paying for the health care cost of your own employees. Therefore, in some cases, there can be money left over at the end of the year.
Level Funded Plans: This type of insurance plan is a hybrid of a small group plan and self-funded employee health insurance. Level funded insurance is a risk-management insurance plan option that helps minimize the health insurance costs for small-to-mid-sized businesses. They are a group-plan alternative to fully insured plans.
Additional Options: Finally, you can offer a Health Savings Account (HSA) or a Flexible Spending Account (FSA) instead of traditional insurance for your employees. An HSA works best when used in conjunction with a high deductible health insurance plan. In essence, an HSA is a tax-advantaged savings account that allows employees to offset high deductible costs. An FSA gives both employees and employers even more options. It is also tax-advantaged and works best with another health plan, not just primarily high-deductible plans as in the case of HSA.
Health Benefits Are a Must For a Competitive Work Environment
It’s important to partner with an insurance agent who has experience in this particular area. They can do all the detailed work for you and can help you compare small business health insurance plans to find the one that best meets your business’s needs. Reach out to our team of experts today, or download our FREE ebook below for a detailed guide on how you can use your employee benefits plan to recruit and retain employees.