The Affordable Care Act has made health insurance more accessible than ever. However, the act is not perfect and there are still many questions small business owners need to ask themselves before deciding whether or not they should offer health insurance.
The health insurance near me is a question that many small businesses are now asking. There are many questions that should be asked before offering health insurance to employees or their families.
Unlike companies with 50 or more workers, small businesses are not required to provide health insurance to their employees under the Affordable Care Act. Even so, you may think about including a health benefits package to keep your workers happy, healthy, and committed to their employment.
Here are five things to consider when deciding whether or not health benefits are appropriate for your company:
Is it necessary for your workers to get health insurance?
Before you start looking into offering coverage, you should ask your workers directly whether they want to be covered by their company. While it’s true that everyone in the United States now has to have health insurance (with a few exceptions), your workers may have discovered coverage that they like elsewhere. They may have purchased an individual insurance via healthcare.gov or been added to a spouse’s plan.
Your workers, on the other hand, may be uninsured or dissatisfied with their existing plan. Ask them whether they’d be interested in receiving health insurance via their job.
What is the maximum amount of money you can pay on health insurance?
The expenses of health insurance supplied by an employer are typically shared between the company and the workers. You may pay anywhere from 0% to 100% of your employee’s premiums as a company owner.
The employer, on the other hand, is usually required to cover at least half of the cost. According to a Kaiser Family Foundation research from 2014, the average cost of a group health plan was about $6,000. This translates to at least $3,000 per employee.
However, purchasing health insurance via the Affordable Care Act’s small business market will save you a lot of money. According to Fit Small Business, the average cost per employee is closer to $4,000, bringing your total to $2,000.
Will you be denying benefits to employees?
If your workers buy health insurance on their own via healthcare.gov, they may be eligible for a subsidy on their premiums. They must earn less than 400 percent of the poverty line, which in 2014 was $46,680 (or $95,400 for a family of four). This subsidy may be very beneficial. According to Fit Small Business, a family of four with a household income of $50,000 may save up to 60% on their insurance costs.
The kicker is that if an employee gets employer-provided coverage, they are immediately excluded from obtaining a subsidy. Even if they decline employment coverage, the fact that it is offered implies they are not eligible for a subsidy.
Before you buy a group plan, find out how many of your workers are eligible for subsidies and how much money they might save. If the majority of your workers are eligible, you shouldn’t provide a group plan that excludes them.
Will your workers benefit from a one-size-fits-all approach?
Is there a range of ages among your employees? Do any of them get therapy on a regular basis, or are they planning a pregnancy or other significant medical procedure? All of these variables will influence the kind of health plan they need.
Employees with a chronic illness, for example, would likely choose a health plan that covers more of their costs, even if it means paying a larger monthly premium. Employees who are healthy and do not expect a lot of treatment, on the other hand, would likely be willing to pay a higher deductible in return for a reduced monthly premium.
If you’re buying a single group plan for your employees, you’ll need to think about all of this. If your workers have disparate needs, a group plan may not be worthwhile. Alternatively, you may be interested in purchasing a group plan that allows workers to choose from a variety of coverage.
Is it possible for your workers to get health insurance on their own?
As you can undoubtedly see, there are many potential benefits to workers buying their own health insurance. They may choose the best plan for them and apply for a subsidy that might cover a substantial portion of the cost. If this is something that your workers are interested in, you may choose to provide them with a stipend rather than a group plan so that they can purchase insurance on their own.
Is your company providing health insurance to its employees? What factors influenced your decision? Please let us know in the comments section.
Frequently Asked Questions
How do small business owners get health insurance?
Small business owners can get health insurance through the Affordable Care Act.
What are the 4 things that you should consider when choosing insurance?
The 4 things to consider when choosing insurance are the type of coverage, cost, deductible, and length of contract.
What are some important health insurance questions to ask yourself?
You should ask yourself if you are covered by your employers health insurance plan, and what the cost of coverage is.
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