Introduction

Here are some suggestions that could lower your small business health insurance costs if you already have business insurance but are having trouble offering health insurance.

Keep the workforce healthy. Many large corporations provide wellness initiatives that specifically allot a certain period of the day for all staff members to exercise. This might entail setting up a small gym there or taking a group for a stroll around the common area. To assist their employees in becoming or maintaining healthy lifestyles, some businesses provide rewards for weight loss as well as dietary advice and tips. This might be a good option for you to provide to your staff, depending on the size of your small business.

Saving money on health insurance for your small business can be difficult. However, there are ways to get around the financial barriers and secure the coverage your company needs. The two main advantages of employer-based insurance are as follows. Although costly, these plans typically offer the best overall protection for you and your employees. Second, offering benefits is crucial for luring in and keeping top talent.

Why are small business insurance costs so much higher than those for large corporations?

The high quality coverage that is concentrated on a small group of people is the reason why health insurance for small businesses is so expensive. An insurance company's perception of the financial risk posed by each member of the group varies, and this risk is aggregated and distributed among the group members. Small business owners may experience excessively high increases in premiums as a result of one or two members, whereas large corporations pay significantly less because the risk is dispersed among such a large group. State laws requiring insurance for employees also apply to small businesses, and these laws may specify the conditions and treatments that certain policies must cover. Policies for large corporations are governed by federal law, typically self-insured, and have fewer required benefits.

With the Health Care Reform Bill, won't this be fixed?

This is still up in the air. Small business owners will gain from insurance exchanges, pools, tax credits, subsidies, and other benefits. However, a bill that is still being worked on and whose proposed policies won't go into effect until around 2013, is both unreliable. The bill will also assist you with costs, but it won't stop them from rising over time. As a business owner, you must be fully informed of your options for preserving your bottom line.

Additionally, people can open health savings accounts.

However, business insurance that specifically covers conditions like specific diseases or illnesses, dental care, accidents, and vision care may be available to you or your staff. The money usually doesn't run out. Any contributions and withdrawals are also tax-free, and people can use 1040 tax forms to make tax deduction claims. As a result, employees are eligible for the tax break without having to itemise, and business owners can deduct employer contributions as well.

A sensible way to lower small business insurance costs is to ask your staff to contribute more to the arrangement. This plan's drawback is that it might not be well-liked by employees, and it's common for businesses to exclude dental and vision insurance. To establish a health savings account, you must have a high-deductible health insurance plan. Consult with your employees to find out what they want covered. Employees can take their accounts with them if they leave, and these funds can only be used to pay for medical expenses.

Consider health investment accounts, which are gaining popularity as a substitute among small business owners. These accounts are kept aside to cover some medical expenses because they are tax-exempt. This may result in a reduction in your small business health insurance costs while also providing tax benefits to your employees.

Conclusion

Any number of employees can be covered by a group health insurance plan, but the cost is lower for everyone the more employees are covered. According to a survey of health insurance plans conducted in 2006, 80 percent of businesses with ten or fewer employees paid an average of $330 per month. According to the same survey, businesses with between 26 and 50 employees paid an average of $287 per worker. It is possible to partner with another business in your state in order to obtain this less expensive health insurance.

Speak with your local insurance provider to learn more about business insurance options and to inquire about extending the coverage to include health insurance. Business insurance does not have to be expensive, and by offering this service, the company can afford to keep a sizable number of employees. Ask your local insurance agent for more information about business health insurance.