Corporate Health Insurance Tips for Business Owners

In today’s world, most employees expect their employer to provide health insurance coverage. In fact, 96% of firms with more than 50 employees offer health insurance. Almost 30% of smaller companies offer health insurance.

Do you own a medium to large-sized company? Now is the time to get on board with offering health insurance as an employee benefit.

Interested in offering corporate health insurance but don’t know where to start? Continue reading for 3 tips to help you make an informed decision.

1. Understand Your Corporate Health Insurance Options

In the insurance market, there are three main options for a business owner. You can:

  1. Purchase a group health insurance plan
  2. Join a professional employer organization
  3. Shop for a group plan offered on the health insurance exchange

So how do you know which option is best for your company?

This all depends on the health demographics of your company. Your decision will also vary, depending on how flexible of a plan your employees want.

Group Health Plans

Group health plans are most common. You will pay a set monthly premium. This rate will vary depending on:

  • Health of your employees
  • Age demographics
  • Offered employee wellness incentives

The healthier your employees are, the lower your premium will be.

High Deductible Plan

  • Is your workforce young?
  • Is your workforce healthy?
  • Are your employees generally free of chronic illness?

If so, then a high deductible plan may be best.

High deductible plans offer higher deductibles and lower monthly premiums. But, your employees will pay the full deductible amount before coverage is active.

You’ll also need to ensure your employee’s salaries can cover deductible costs.

Health Insurance Marketplace

Another option is the health insurance market place. Here you can choose a plan that allows for coverage flexibility.

This means each employee can choose the best coverage for their health situation.

2. Understand Potential Tax Breaks

Can you pay 50% of the insurance premium cost? Have less than 25 full-time employees? Offer salaries of less than $50,000 a year?

If so, you qualify for tax credits. Tax credits will reduce the overall cost of providing health insurance.

You can also write off health insurance premiums as tax deductions. This puts more money back into the company bank account!

3. Ask the Right Questions

You want to make the best decision in regards to health insurance. Don’t settle for the first insurance company you come across. Ask around for referrals and do your homework!

Before selecting an insurance type, company, and/or broker, ask these questions.

  • What type of flexibility do your employees seek?
  • How many employees need health insurance?
  • How much can you afford to pay?
  • Do any employees qualify for health care subsidies?
  • How much of the premium and deductible costs can your employees afford?

With the answers to these questions, you can figure out the best corporate health insurance option for your company.

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