Group Health Insurance Savings
Over the past three years, health insurance premiums have seen double digit increases. The increases were the largest for those in small companies. All of the best indicators seem to point to the fact that these increases will continue for quite a while.
If you, as a small business owner, are starting to panic over this fact, you are not the only one. Small companies repeatedly cite the rising cost of providing health insurance to their workers as their number one concern. While employees know that health care coverage is important to their employers, they often feel like they have a no-win choice to make: either cut benefits completely or pass on the increasing costs to their employees; neither of these options works well.
While you may feel that these are your only two choices, there are other options out there. You can find a good group health plan at a rate that is not going to break the budget. Whether you currently have a plan that is too expensive or are simply looking for a plan because you do not have one at all, here are some tips you can use:
Compare benefits and get quotes form several insurance companies; if you were buying a car, you would not make a purchase until you were sure that the make and model you have chosen was right for you. Shopping for group health insurance coverage is no different, so do not limit yourself by only getting quotes from one or two companies. Using an online agent is one of the best and most convenient ways to get a good look at the insurance options in your area. Licensed group health insurance agents can give you quotes and benefit information from many different insurance companies and insurance plans. The more you have to choose from, the better the chance that the agent will be able to match your business to a plan that will save you money, while at the same time covering the things your employees need. You will not pay for the extra coverage options that your employees do not need. Whether you work with an agent on or off line, make sure that they are licensed to practice in your state.
Consider a plan with a high deductible; you can also save money on your group health care coverage by taking on a plan with a high deductible. This is a good option when your employees are healthy and do not go to the doctor very often. Your employees will still have the valuable coverage they need, but you will not have to pay as much for it. Your employees will have to pay the deductibles, but they will be protected when catastrophic events occur, such as a serious injury or illness. Talk to your licensed agent about the high-deductible plans available in your area to help you determine if this is a good option for your business.
Look into tax incentives; be sure to learn about the tax benefits you qualify for as a business owner when you purchase group health insurance for your employees. Premiums may be fully deductible, and you may be able to reduce your payroll tax because you are offering coverage as part of your compensation package. You can also get a tax break by using a Health Savings Account, or HSA. Both you and your employees can use these accounts to contribute money towards deductibles that is exempt from payroll taxes. Your agent will be able to help you find HSA-eligible plans. These tax benefits make group health insurance plans even more affordable.
