You don’t need convincing that providing quality health care insurance for your employees is the right thing to do. And even if you did, it’s the law under the federal Affordable Care Act (ACA). But as a small to midsize business owner, you feel like you’re swimming upstream when it comes to finding the best, most affordable option.
You’re not alone. A recent survey showed that 86 percent of companies with more than 500 employees offered health insurance, compared to only 55 percent of those with fewer than 100 employees.
Knowledge is Power
As you select a health insurance plan for your employees:
- Determine your budget and the premium percentage you’d like to cover.
- Get various plan options and choose a plan type, such as an HMO, a PPO or a POS.
- Consider your employees’ health needs and demographics.
There are numerous benefits to offering group insurance coverage. For starters, you receive tax credits and related benefits. And, offering health insurance adds to your employees’ job satisfaction and loyalty levels.
- In a recent Harris poll, 86 percent of workers said that receiving comprehensive medical benefits would influence them to choose one job over another that did not.
- Beyond other tax credits, you may be able to write off the insurance premiums you pay as tax deductions, saving you even more money. Plus, with just a little extra paperwork, you may be able to set up your plan in such a way that employees can pay their portions of premiums with pre-tax dollars.
To discern which plan is best for our company, ask these questions:
- What is covered?
- What does the provider network look like?
- What are the premiums, deductibles, copays and coinsurance payments?
- What is the cost share?
- How much choice will my employees have?
And last but not least:
- Do I trust this insurance company?
Healthy Employees are Productive Employees
Employees without health insurance are less likely to get annual check-ups or visit the doctor when they get sick. Ultimately, this leads to lower productivity as people wind up taking more and more time off work.
Attracting and retaining the best talent often comes down to the benefits you offer. In addition to ensuring compliance with ACA guidelines, you can keep your employees happy and reduce costly turnover by selecting the right health insurance option. But, the cost of a comprehensive, ACA-compliant program can be enough to put some companies out of business. The solution may be a partnership with the right professional employer organization (PEO).
Because of our buying power, Lyons HR can help you provide health insurance and other benefits at a lower cost than you may be able to achieve on your own. Contact us today to further explore your options.