Rising Cost of Health Insurance? Here’s How You Can Save

You have eventually sealed the deal with your prospective employee; however, they pop in one final question, “Do you have insurance?” Of course, it’s there, but it has been a pain for as long as you have been paying for the expenses. Maybe you have been considering lowering or even eliminating it. Catering for the welfare of your staff is as important as your productivity and profit generation. Look after them properly, and they are more productive. It is very hard escaping the obligation of managing your employee’s health coverage.

Why Get a Health Cover For Your Staff?

When health insurance is absent from your offer, what’s to stop a prospective employee from moving on to your competition? They offer a similar salary range and employee benefits, and their insurance is probably better. Providing health care coverage to your staff is the key to employee retention. Lack of it will expose you to high employee turnover and fewer hires for your small business. Small business medical insurance is one of the things that offer you a competitive advantage. The following are more reasons why you should go for medical insurance:

  • It is the law: Even if you are a small business, when you possess more than 50 employees, then you are legally obligated to provide your full-time employees with affordable health coverage.
  • Group coverage is better: A personal plan covers only you and your family, but with a group plan, you get some additional insurance advantages.
  • Tax benefits: You can enjoy some tax credits for your business when you have a health coverage for your staff. However, it is integral that you buy a plan via a Small Business Health Options Program Exchange. You can even write-off health insurance premiums as a business expense.
  • Improve your employee’s health: A health insurance plan encourages employees to get yearly checks, which means that they will be healthier and more productive.

Determining the best health insurance for your small firm is a cumbersome process. Many small businesses do not have an HR department to back you up, which means you are the eyes and ears everywhere. Comprehending how medical insurance works is the ultimate solution to eliminating your problem, and landing at the best insurance program for your employees. It can be a capital expense for your firm if you are not careful when choosing. How can you get the best medical insurance as well as cut down on the cost?

High-Deductible Mixed With Health Savings Account (HSA)

Such an approach motivates one to think about their costs at all times. With this, you can use your pretax employee money to cater for unpaid medical cost, and any unused funds are carried forward to the future. You have two options: either fund the account or request the employees to do so. HRA’s (Health Reimbursement Accounts) have high deductible insurance plans. The employer should reserve some money to facilitate the reimbursement of the employee deductibles. Staff can roll over any unused funds.

Buying Cooperatives

Small companies can massively save on their employee’s health insurance by increasing their bargaining power. How can they achieve this? These small businesses can join health-insurance cooperatives. Although the actual savings that a firm can make via joining these cooperatives vary, ultimately, the terms of the health coverage might be better than if the small firm went at it alone. Of course, insurance rates in the open market depend on underwriting laws in your state as well as other factors. Nevertheless, you are guaranteed of getting some extras that you would have paid for even if the insurance were not discounted.

Organization Wellness Program

There are very many initiatives that you can start to ensure that your employees maintain a proper wellness culture. You can offer them a gym membership, free screenings and so much more. Such a program can aid your firm in keeping the health insurance cost at a minimum via promoting better health awareness, as they take better care of themselves.

Write It Off As A Business Expense

Any firm that takes a groups health cover for its employees can claim these as business expenses when they are filing their taxes. How does it work? You might need the services of a CPA for perfect accounting of these expenses; however, it is basic.

Disease Management

The main aim of a disease management program is to cut down the effects of a disease that can be a chronic illness or any other condition via continuous screening. When you have an employee that gets extended stay at the hospital will expose you to huge expenses that will be a huge burden for your small organization. This is even harder when your resources are limited. When you offer your employees some personalized, preventive care, you prevent such an expense via proper disease management.

Entirely comprehending medical insurance is complicated. In fact, there are very many insurance firms that have tweaked plans; however, the expense to your firm will be unmanageable if you don’t tread carefully. You cannot afford to miss one, hence figure out a way to lessen the impact on your returns.

About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.