As a small business owner, you are faced with a variety of decisions regarding your employees. In today’s day and age, it can be more challenging than ever to offer high quality yet affordable health insurance coverage.
Regardless of how many employees you have – from 2 to 50 – it is safe to say that there will be questions on your mind. As you learn more about small business group health insurance, it will be easier to decide whether to offer this benefit as well as which type of policy to purchase.
Here are five frequently asked questions (FAQs) regarding the purchase of this coverage:
1. How much does group health insurance cost? As with any insurance, the answer to this question will vary based on a variety of factors including the company you buy from as well as the type of coverage you choose.
Note: while some small businesses pay for 100 percent of the premium, this is becoming less common with each passing day. If you cannot afford to pay in full, you will have to ask participating employees to contribute.
2. What are the benefits of providing group health insurance? Above all else, this will keep your employees happy as many companies are skimping in this area. Along with this, it will allow your company to stay competitive within your industry. Additionally, providing health insurance goes a long way in helping to keep your employees healthy. In turn, they can perform better on the job.
3. How does it work? If you are new to buying this type of insurance, you may not fully realize how simple it can be. Generally speaking, the employer selects a group health insurance plan and then invites every employee to enroll. Some employees will take advantage while others may opt to avoid this, such as those who already receive coverage through a spouse’s plan.
Typically, the employer pays for at least 50 percent of the monthly premium. The amount not covered by the employer is paid by the employee with pre-tax dollars.
4. Are there any tax benefits? The tax benefits of offering group health insurance will not be the same for every company. That being said, this can be one of the biggest benefits of offering a plan to employees. Did you know you might be able to deduct 100 percent of the premiums paid? This can go a long way in helping your tax situation.
5. Which plan is best for my company and employees? There is no “right or wrong” answer to this question. Instead, compare multiple quotes to ensure that you are purchasing the best plan at an affordable price.
The amount of the premium you are willing to pay will affect the policy that you purchase.
Like many small business owners, you may be holding yourself back because you don’t feel that you have enough knowledge. By addressing the frequently asked questions above, as well as any others that are on your mind, it will be easier for you to purchase the right plan for your company and its employees.
Final tip: it is free to request small business group health insurance quotes, making it easy to get started. If nothing else, comparing multiple quotes will help you better understand what is available.
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