Offering medical insurance is a great way to attract and retain skilled employees. It takes your workers’ minds off immediate financial worries and allows them to focus on work instead. Plus, businesses benefit in other ways when they make medical insurance a part of the package: they can become eligible for tax credits and gain tax advantages. Since your employees’ health is being taken care of, you’ll have fewer sick days and less absenteeism. So let’s learn how exactly to start offering this vital benefit.
Step 1: Figure out the costs and risks involved
Of course, it’s all very well to know how medical insurance will benefit both the company and your employees. However, it is vital to recognize the potential costs and risks involved with any new expenditure in order to identify the most cost effective plan for your business. The costs you incur will mostly depend on the kind of benefits you end up selecting. Some plans come with more uncertainty, which can make it hard for a small scale business to go through financial planning adequately.
Additionally, businesses have to keep administrative costs in mind as well. More traditional plans can cause you to devote a relatively larger amount of time on administrative activities like remitting premiums and filling out forms. Small businesses can find it easier to go with a defined contribution health plan, which will not only enable them to cut costs, but also decrease administrative time.
Step 2: Assess your health plan options
If you own a small business, you can either choose a group health insurance plan, or a defined contribution health plan. The former is the more traditional route, and involves all the employees getting more or less the same benefits. It covers employees as well as family members.
On the other hand, with defined contribution health plans, the company can allow employees more freedom of choice over benefits. Actually, these aren’t exactly health benefit plans. They just allow employees to spend a tax free allowance on their medical expenses of their own volition. These plans are cheaper to provide, so it’s becoming increasingly common for businesses to choose them.
Of course, these plans are just two large umbrella groups that cover a variety of options within them. Do your research in order to figure out which one plan suits the needs of your company best.
Step 3: Consult an insurance broker
Small business owners often try to do everything themselves without taking expert advice into consideration. However, it’s best to confer with an insurance broker in order to benefit from in-depth technical know-how about your insurance plan options and health care policy and reforms in general. This will enable you to tailor your health insurance plan according to the exact specifications of your company. So details such as the number of employees and their age brackets and gender will be taken into account. Work with someone recommended by others so you know you can trust their judgment.
At Barich and Associates Insurance Marketing Services, we do much more than simply deliver a wide selection of employee benefits, products and services. We deliver a difference by providing expert counsel, superior service, partnership and trust, and by allocating our resources to a level of service that matches your level of need. Call us or Request a free quote today!