6 Things to Consider When Looking for a Health Insurance Provider
Choosing a health insurance provider for your small business can be challenging. But it is worth the effort to find a quality health insurance plan provided by a reputable broker or agent. You will also need to carefully consider the options you want to offer as well as the health insurance cost. Here are a few things to consider:
1. What are the group rates? Health care plan rates will vary from one vendor to another. So it’s important to shop a wide variety of health insurance providers.
2. What are the premium costs for single, two-person, and family coverage?
3. What are the terms of the policy? Is there an annual deductible that employees must meet before they can be covered for certain things?
4. What out-of-pocket costs, such as co-payments, deductibles, and co-insurances you’re your employees be responsible for?
5. What is the most you want your employees to be required to pay out-of-pocket? Include both their premium contribution and benefit costs when considering this. Many employers cover a portion of the premium cost each month. Some also choose to cover a portion of the deductible for each medical procedure.
6. Do you want to provide options such as disability insurance, dental care, emergency treatment and prescription drug coverage?
Keep in mind that if you have up to 25 employees, pay average annual wages below $50,000, and provide health insurance, you may qualify for a small business tax credit of up to 35% (up to 25% for non-profits) to offset the cost of your insurance. Starting in 2014, the small business tax credit goes up to 50% (up to 35% for non-profits) for qualifying businesses, making the cost of providing insurance even lower.
A final, important step is to gather quotes based on your needs. While you should not base your decision on price alone, it is a key factor. Providing health insurance means an ongoing expense for businesses. But with careful planning, especially when creating the summary plan description, which we will cover in the next section of this guide, even smaller businesses are usually able to find a plan that fits their budget.
The best way to compare prices—and to be sure you’re dealing with a quality, reputable insurance provider is to obtain quotes from top, pre-screened vendors. At InsideUp, we simplify the entire vendor selection process so you can choose with confidence. By taking a moment to fill out the form on this page, you can receive competitive quotes from top health insurance providers.
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