Health coverage is considered as the most important employee benefit here in America. This makes it one of the most attractive benefits you can offer to your employees, especially since the cost is tax deductible. It can help you increase retention, easily recruit more hard working individuals, and lowers the absentee or call off rate.
With so many plans on the market, finding the right health coverage for employees can be a bit of a challenge. This guide is here to help you make the best decision for your company.
What Type Should You Offer?
When it comes to small business, many choose a traditional health insurance option for the flexibility it provides employees in choosing a doctor or a hospital. This is often a better option than managed care plans, as they can be more expensive due to their “fee for service” options. The only downside to this choice can lie in its co-pays and deductibles for employees.
When considering what type of insurance you should offer, make a checklist of coverages offered such as dental or maternity leave. Afterwards, there two routes you could take. You can either hire an insurance broker or evaluate the plans yourself.
Hiring a Broker
Brokers offer plans from multiple insurers, giving you plenty of options to choose from. Choose one who has an extensive background in dealing with business similar to yours. Once you have found a reliable person to work with, getting a recommendation from them based on the criteria you are looking for can help you to make the best decision.
Evaluating a Policy
There are a number of factors to consider when evaluating insurance policies on your own. This option can be a difficult one, but knowing what to look for will help narrow your options.
Cost: This includes the overall cost, deductibles, and co-insurance costs. How much can your company pay for, and can your employees contribute given their salaries? As a general rule, employees should not pay more than 25% or have co-insurance expenses exceeding $10,000.
Coverage: Pay close attention to what conditions might limit coverage to an unrealistically low amount. Due to their reputation for insufficient coverage, Dread Disease and Hospital Indemnity policies should be avoided. Also, pay attention to whether or not the plan meets the requirements on your checklist.
Reimbursement: This is an excellent way to tell if the plan you are looking at has adequate coverage. Can it reimburse the costs of various procedures? If you are unsure, speak with a physician about what coverage amounts are reasonable.
Restrictions: All you have to do for this one is pay close attention to restrictions that would not make sense for your business. For instance, a plan that does not cover out of state hospital expenses would not make sense if you have employees who travel.
Finding a Better Deal
If none of the policies you are viewing offer affordable coverage, there are other options to consider. Contact your state department of insurance to learn more about small business group health providers in your area. Your business may also be able to join an association that offers group benefits for its members. Just like any other insurance plan, make sure to go over them with a fine tooth comb.
Finding the right insurance for your business can be a complicated task, but you do have options and resources available. Whether you choose to hire an insurance broker or evaluate the policies yourself, knowing what to look for in a policy and what your employees need can help you to give them the best coverage available.
Founder Dinis Guarda
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