Small Business Health Plans: Key Decisions That Must Be Made

Small Business Health Plans: Key Decisions That Must Be Made

As a business owner, providing small business health plans for your employees is a very important adjudication you have to make. The understanding to have a health plan, however, is only the first step. There are other important decisions to make along the way.

• Oracle 1: How much can you fit? Small business health plans can be hot property and as a business owner you ' ll be looking at rising costs in premiums over time. An average small business pays out approximately $1, 500 per month per employee for a rib - level health insurance plan. As your business grows, and as you take on supplementary employees, keep this number in mind. Thankfully, insurance premium payments are 100 % tax deductible, but you ' re still paying money. This means you ' ll have to decide what impact this will have on your bottom line.

• The call 2: How much will your employees pay for their insurance? Most employers pay at first off 50 % of an employee ' s health insurance premium. Whatever you don ' t pay for as a business, your employee will need to pay for personally. With dependents, there are other things that have to be taken into account as well. Will the business pay for a ratio of dependents ' health coverage? Depending on the type of business you have, and the number of dependents your employees have, this is a crucial benchmark that could have a dramatic impact on your small business health insurance plan.

• Settlement 3: What type of savings plan will you use? A Health Savings Account ( HSA ) or a Health Reimbursement Arrangement ( HRA ) provides an attractive way for you to save money as a business owner, and for your employees to save up for medical costs. Both HSAs and HRAs can help to lower your daily premium costs, while reposing providing for employee coverage needs.

• Judgment 4: Will you offer supplemental health benefits? The more foxy your company health plan, the more likely you ' ll be an estimable manager. If you ' re part of an intensely competitive labor market, you ' ll want to offer more supplementary benefits to unfolding employees. At the very numero uno, it is wary to make supplemental health benefits available, even if you can ' t furnish the cost for all of them. Offering an HSA as an alternative to supplemental health benefits is a adroit variation, both for cost - savings on premiums and in attracting prepatent employees.

There are parlous of decisions to make when considering health plans, and these are only a start. As key decisions go, these are not optional when you ' re running a business. They are crucial due to the nitty-gritty of hiring and retaining personnel. By making smart decisions about small business health plans now, you and your employees will without fail benefit in the long run.