As a small business, it can feel impossible to shop for health insurance. You know you need something you can afford and something that fits your employees’ needs, but you’re not even sure where to begin. Depending on the size of your organization, you might even be required to offer coverage under the employer mandate.
Either way, you need to get your biggest questions answered. Before you start your search for small business health insurance, read through these 4 things you need to know. You’ll be on your way to buying health insurance with confidence in no time.
Table of Contents
Do You Actually Need Health Insurance?
First, you need to figure out if you’re required to have group health insurance. In general, this will depend on the size of your company. While the individual health insurance mandate that requires every individual to have health insurance is no longer in effect, some employers are still required to offer health insurance.
If you have the equivalent of 50 or more full-time employees for at least 6 months during the year, you’re required to offer what’s known as basic minimum coverage. However, even if you’re under that 50-person requirement, you still might choose to offer health insurance. In general, having a comprehensive benefits package that includes quality health insurance will help you attract and retain the top employees.
2. Can You Purchase Group Insurance as a Small Business?
There’s a lot of confusion around what’s considered a “group” when it comes to health insurance. Usually, we only think of group insurance in the form of big enterprises that have a lot of purchasing power. While it’s true it’s simpler for these types of companies to get coverage, you can sometimes buy group health insurance plans with as little as one employee or even if you’re just self-employed. It will depend on what your state considers as a “group.”
In addition, you don’t have to go at it alone. You can join a small business alliance to help lower the cost of group coverage. In an alliance, you’ll join with other small businesses to keep costs of group insurance low.
3. How Much Do Employers Cover?
According to the Kaiser Family Foundation Employer Health Benefits Survey, most employers cover an average of 83% of individual premium costs and 72% of family costs. This number tends to change based on the size of the business. For example, small businesses are likely to cover less when it comes to employer-sponsored coverage.
When deciding how much you can cover, take a few different things into account:
- How many employees you need covered
- Your benefits and compensation package
- State minimum employer contribution
4. Should Employers Offer Supplemental Insurance?
Last but not least, small employers also need to consider offering supplemental insurance. While this might seem like an additional expense and challenge, it’s a great benefit to your existing health insurance and compensation package. Despite common misconceptions, traditional health insurance exclude coverage for things like dental and vision care, as well as many other necessary health expenses or concerns.
Including an inexpensive supplemental health insurance option in addition to your traditional health insurance can be a great addition. A recent survey from Glassdoor reports that health insurance is the most requested employee benefit, so why not be even more competitive?
How Much Do You Know About Health Insurance?
How much did you know about these four topics above? The more you understand small business health insurance, the better equipped you’ll be to meet your employees’ needs. Health insurance benefits everyone, even the employer.
It’s time to stop putting off your small business health insurance. It doesn’t have to be a complicated or expensive process as long as you know what you’re doing. Start your search today to create a better future for your employees.
About Carson Derrow
