Choosing insurance

5 Things You Must Know Before Purchasing Health Insurance

Small business health insurance is a must-have if you want to keep attracting top-tier talent to your workforce. However, before deciding on the best health insurance options for your employees, there are quite a few things that you need to consider:

5 Things You Must Know Before Purchasing Health Insurance

1. Types of Plans Available

What type of plan is best for your workers? You’ll need to ask the insurer to completely understand each plan’s options and costs. A few of the plan options that may be offered to you are:

Choose a plan, or multiple plan options, to find one that is ideal for your workforce. Once you have a plan, consider the provider network.

2. Provider Network

Provider networks must be extensive in your area so that employees can get the care they need conveniently. Review the network and what options are available for:

  • Primary doctors
  • Specialist
  • Etc.

If the network where the business is located and in the surrounding area is lacking, it may be in your best interest to consider other health insurance providers for your employers.

3. Premiums and Costs

Can your workforce afford the premiums? Can your business afford to offer the plan? It’s crucial to consider the average cost of premiums versus the salary employees are paid to learn whether the insurance is a good choice for all parties.

As an employer, you may also opt to pay more to lower premiums or even cover 100% of the insurance, but it’s often difficult for a newer small business to cover these types of expenses.

4. Deductibles for Employees

Cost must also include deductible options for employees. The lower the deductible, the higher the insurance premiums will be. However, you should consider whether the insurer offers a variety of options that will include:

  • Different deductibles
  • Varying co-pay options
  • Coinsurance
  • Prescription coverage

Small businesses that want to offer the best for their employees must consider the out-of-pocket expenses for their staff. You may have to pay more to offer a better insurance plan or can cover all medical premiums, but you must consider the overhead and how it impacts your business in the long term.

5. Does the Plan Keep Employees Healthy?

Health is reliant on a person’s wellness. Some insurers offer wellness options, which provide the following to employees:

  • Incentives to join programs
  • Discounts on premiums
  • Cash rewards
  • Gym memberships

Wellness programs encourage your workforce to make smarter, healthier decisions in life. Through wellness programs, you’ll offer bonuses to employees while also helping them live happier, healthier lives in the process.

Many plans are starting to offer wellness programs, and it’s something to consider when choosing an insurance option for your employees.

Offering the best small business health insurance possible will strengthen your workforce, improve employee satisfaction, and protect them. However, if you have any questions or need to know more about choosing a plan, we can help.

2 comments

  1. You made a good point when you said that you must consider determining if your business could afford the cost of the health insurance plan that is being offered. Many small business owners will surely find tips helpful, especially if they have a restricted cash flow to consider. I could imagine how a health insurance broker could help a company find a plan that will meet its needs and budget.

  2. Thank you for providing these tips on what to consider before you purchase a health insurance plan. I agree with you that it is smart to make sure your workforce can afford the premiums of the plan you are considering. I’d also recommend considering the reputation of the agency you are contemplating to make sure they provide quality insurance.

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