health-insuranceNo matter how you look at it, small business health insurance is expensive. What’s even more frustrating is that you know that large corporations can negotiate better rates with the insurance companies, but that businesses with 50 or fewer employees don’t have that kind of influence.

You want to offer health insurance to your employees-of course you do! You need it yourself, and you know your employees need it for themselves and their families. You also know that a major medical catastrophe could keep your valued employees out of work for weeks or longer if they’re not covered by insurance. And, you’re painfully aware that not being able to provide insurance will keep quality people from coming to work for you.

The bottom line is, offering small business health insurance coverage is eating into your profits, and you just don’t know if you can keep your company open and continue to provide benefits. So, what do you do?

The first thing to remember when searching for a good policy to offer your employees is to not take the first package you find. Look around and do your research. Most policies ARE very expensive, but there are also some good bargains out there if you take the time to find them. Don’t be afraid to ask for discounts, either. Just because you’re a small business doesn’t mean the insurance companies won’t negotiate with you, and you’ll never know unless you try.

You can also set up health savings accounts for your employees. These are accounts that your employees fund through payroll deductions that are used to pay co-pays, prescriptions, and other costs not covered by insurance. When you offer these accounts, you can sign up for insurance policies that have larger deductibles, and are therefore less expensive.

Finally, you can split the cost of premiums with your employees. Many employers are doing this nowadays. The typical arrangement is for you to pay half of the monthly premiums, while your employee pays the other half through a payroll deduction. Many people expect to have to do this now, and it will keep your small business health insurance costs down, which is ultimately the best thing for your business. By exploring your options, you can keep both your employees AND your company healthy!

This is the sixth installment in our health insurance series. Be sure to check back for updates…

Filed under: Health Insurance

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