Lots of small business owners are excluding a group health insurance plan from their company benefits for the present time. Part of the reason has to be the skyrocketing premiums, and of all health insurance customers, small business owners tend to get hit the hardest. The group is small, so risk cannot be spread over a large number of people. And unlike individual health insurance, people will not be underwritten on their own, so insurance companies charge because they have to take on the entire company.
Indeed if the business is small, and all employees and owners have access to other health insurance, it may be sensible to delay a decision about a group health insurance policy. However, group health insurance tend to be one benefit that quality employees look for when they choose a new job, and so it may be hard to recruit and retain the best people if health insurance is an issue for them.
A group health insurance plan can also provide important tax deductions. The actual cost of health insurance will be less than the premiums because of these deductions. It also provides employees with security, and it shows that an employer cares about them. Being known as a good employer can pay off in the long term.
You will, of course, have choices in copay and deductible amounts. If you cannot afford a Cadillac health plan, then you still may be able to afford a Dodge! The addition of an inexpensive accident plan or supplemental sickness policy may allow you to choose a very affordable high deductible plan! And of course, many small business owners expect their employees to contribute a percentage of the premiums. The amount of the percentage that employees may contribute to a plan may vary by insurance company and state. Supplemental sickness and accident policies could be purchased by your employees on a voluntary basis, so they would share in the premiums, but still have the advantages of group insurance.
In summary, group health insurance can be expensive and hard to shop for, but is also one of those basic benefits that good employees will be looking for. With tax advantages and flexible plans, it may be more affordable than you think. Of course, if you think in the long term, it may be a great deal if it helps you keep great employees!
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