- Providing world class service and value for employee benefit group plans since 1987
Group health insurance plans, even small ones, can be very affordable for employees to pay into. Costs for employees can start around $270 per month, or $3240 per year, which is more than three times less than the cost the average American pays into their healthcare annually.
The package you choose from the private insurance company will dictate your rates, premiums, and health care coverage. Sometimes, people assume that their healthcare coverage will diminish by choosing a small crew medical coverage.
However, this is not automatically the case. While healthcare protection packages offered by private insurance providers, or on the state and federal exchanges, are not very customizable, plans from independent insurance agencies like Taylor Benefits are.
With an independent agency, you can receive the health care coverage you need at an attractive price. Health insurance companies need to offer healthcare policies at affordable monthly premiums in order to remain in medical insurance business. These medical coverage providers are in competition with each other, while independent agencies are not.
With an independent agency, you can shop health insurance that covers pre existing conditions and save money by avoiding high insurance premium costs as much as possible. It provides essential health benefits like dental coverage, out of network care, family coverage, etc.
The size of the health packages does not matter as much as the agency offering the plan.
Insurance is a numbers game, no matter which type of health package you choose from the insurance company. Fortunately for those interested in a small business health insurance, premiums are showing a downward trend in the last few years. This is due to Affordable Care Act (ACA) passed by the president Barack Obama in 2010.
According to 2018 research, the average premium per person fell to $409 in 2018 for small business medical coverage plans. This is a drop from $416 in 2017; while it might not sound like a huge improvement, it speaks to health trends that small businesses can certainly get behind.
It’s worth noting that the group health coverage premiums have risen by about 5% since 2015, but this is to be expected when accounting for inflation.
Small business health insurance is still likely to cost both employer and employee a couple hundred dollars in health protection premiums (assuming that the cost is being shared), but this is a significant improvement over some of the alternatives, both in terms of premiums and deductibles.
Moreover, the deductible for small group insurance averages about $3,000, which is much lower than that for individual health plans.
When it comes to small business health insurance, there are essentially five different options that can be explored by small business owners.
The first and most traditional option is a simple crew medical coverage option for small employers. This option is appealing to those who don’t want to wade through the confusing world of business medical coverage, as it’s doubtlessly the easiest choice.
Employers pay a fixed health plan premium, part of which may be paid by the employee, and in return offer health benefits to their workforce and possibly their staff members’ dependents. It’s a straightforward option for a small business owner, but premiums to provide health insurance can be quite high for small businesses.
A newer option for small group health insurance gaining popularity is something called the qualified small employer health reimbursement arrangement (QSEHRA). Though it’s a mouthful, the health plan concept is relatively simple thanks to the legislation passed in 2016.
Basically, employers can offer a certain amount of money (of their choosing) in benefits to employees each month. Covered staff members can purchase healthcare policy premiums, pay toward deductibles, and fill prescriptions within this amount and provide receipts to receive reimbursement. This option is wholly customizable to each worker, but adds some extra administrative burden all the way around.
Similarly, another option is to invest in something called a team coverage health reimbursement arrangement. This means that an employer would offer group medical coverage, but they would also offer a certain monthly allowance to go toward copays, deductibles, and the like.
As with any reimbursement program, employees would need to submit proof of their expenditures, and there are stipulations for what is eligible for reimbursement.
The riskiest option for small business health insurance is for a business to provide self funded plans. This means that rather than paying premiums each month, workers submit their medical bills/prescription drugs and employers reimburse them directly.
This healthcare option is an obvious gamble for small businesses, and although it sometimes plays to employers’ favors, it also has the potential to put them out of business.
Finally, associate health plans (AHPs) are a somewhat precarious option in which small businesses can invest. They are precarious due to the fact that a judge ruled against allowing them in 2019, though this is likely to be appealed. Basically, AHPs are when a number of smaller businesses within an industry or region band together to purchase larger group healthcare policy from the insurance company.
Some small business owners are under the misconception that there is a certain threshold in terms of employee numbers that they must meet in order to be eligible for small crew healthcare policy. While this isn’t strictly untrue, the threshold is incredibly low: at least one employee.
There is, however, a stricter upper limit by which employers must abide. The maximum number of staff members that can still be considered a small team for Medicaid services maxes out at 50. This means that businesses with more than 50 workers must explore large crew health solutions by the insurance companies and check their eligibility for such plans.
It’s important to note that in order to be eligible for small group coverage options, the one employee that is required must meet a number of criteria.
The Affordable Care Act (ACA) does not require small businesses to offer healthcare policy to their workers. However, there are some states that have their own medical coverage requirements for small businesses.
If you are a small business owner in a state with its own healthcare policy requirements, you should contact your state’s department of insurance for more information.
Even if your state does not have its own medical coverage requirements, you may still want to consider offering health insurance to your employees. There are many benefits to offering medical coverage, including:
If you are considering offering health insurance to your workers, there are a few things you need to do:
Cost is always a huge factor when employers are considering different medical benefits plans, but there’s more than meets the eye when it comes to comparing medical coverage for small team and individual health package.
If you only look at the premiums for each type of insurance, there’s not that much of a difference. On average, a small group plan’s premium will work out to an average of $409 per person by the insurance company; an individual plan premium is an average of $440 by the insurance company.
Looking a little closer, you’ll notice that the deductible for small business coverage is more than $1,000 less than that for individual coverage, but there’s even more to unpack than that.
Because employers contribute to the cost of premiums fixed by the health insurance company, the employee premiums amount for insurance is significantly lower with a small team medical coverage plan than an individual one.
This makes a small team program an obvious choice for employers looking to offer their valuable workers a competitive benefits package at the minimum contribution.
There are many reasons that employers ought to invest in team health insurance options, but not all of them are immediately evident. Make sure you thoroughly consider all of the ways that a group plan could positively impact your business before making your decision.
First and foremost, team packages save both businesses and staff members money from payroll taxes. This is possible due to the fact that a larger risk pool translates to lower premiums from the best healthcare policy providers.
1. Affordability: One of the primary advantages of small crew medical benefits is that it often provides affordable rates compared to individual programs. The pooling of workers often allows for better negotiation of premiums.
2. Customization: Independent agencies, in particular, offer flexibility in creating health care packages tailored to the needs of the group.
3. Employee Attraction and Retention: Offering health insurance can make a business more attractive to potential workers and can help retain existing staff. Quality health benefits are often a deciding factor in job selection.
4. Tax Advantages: Both employers and workers can enjoy tax benefits. Employers can usually deduct premiums they pay on a qualifying team health program.
5. Improved Workforce Morale and Productivity: When crews know they’re covered, they’re often happier, less stressed, and more productive.
6. Risk is Spread: With more participants, the risk associated with medical coverage is spread out, which can stabilize costs and premiums.
7. Comprehensive Coverage Options: Group packages often come with the option to include various types of coverage, including dental, vision, and other specialized care, ensuring that employees have holistic health coverage.
8. Employer Contribution: Employers can contribute to premiums, further reducing the cost burden on workers.
9. Employee Wellness and Preventive Care: Many small team packages emphasize wellness programs and preventive care, which can lead to healthier crews and reduced healthcare expenses in the long run.
10. Regulatory Protections: Group plans are often subject to state and federal regulations that protect both the employer and the employee, ensuring that certain standards and protections are in place.
11. Simplified Administration: Though there’s a learning curve, once set up, team programs often provide a streamlined process for administration, especially if outsourced to professional HR or benefits administrators.
12. Continuous Coverage: Even if a worker faces health challenges, they can’t be singled out for premium hikes or dropped from the package, as might happen with individual coverage.
13. Encourages a Healthier Workforce: Access to healthcare can lead to earlier diagnoses and treatments, minimizing downtime and ensuring a healthier workforce.
14. Spousal and Dependent Coverage: Workforce can often extend their coverage to include their families, ensuring that their loved ones are also protected.
15. Competitive Advantage: For small businesses, in particular, offering health insurance can give them an edge over competitors that don’t offer such benefits, especially when trying to attract top talent.
In summary, while there are costs associated with offering a small team medical coverage plan, the myriad benefits, both tangible and intangible, can far outweigh them. It not only supports the health and wellbeing of workers but can also have positive repercussions for the business’s bottom line and overall success.
Additionally, covering more people under a single package helps drive down costs so that employers can afford to purchase better insurance from the broker. This means that collective packages are basically a no-brainer for employers.
When comparing the costs of small team health insurance and individual medical coverage, several factors come into play that can influence the relative costs of each. Here’s a breakdown:
1. Premium Costs:
2. Benefits and Coverage:
3. Tax Benefits:
4. Risk Pooling:
5. Administrative Costs:
6. Cost Stability:
7. Contributions and Cost-sharing:
A small crew package offers a host of benefits to staff members. Because the program is offered through the employer, employees pay a portion of the premium cost generally to offset a comprehensive health coverage for each employee. Additionally, staff members are able to enjoy a higher quality protection plan than they would be able to afford on their own.
All of this creates a brighter company culture and more positive work environment. When workforce feel valued and their medical expenses taken care of, the quality of their work inevitably improves. Plus, staff members are less likely to jump ship when they feel that they’re receiving a quality benefits package for the Medicaid services. Finally, tax incentives and tax-free money is another way in which businesses benefit from offering collective health protection. This only further solidifies the assertion that team health packages are a smart financial move for both businesses and their staff members. Small businesses should consult their tax advisor to avoid any tax penalty for not providing medical benefits to keep the workforce healthy when they need it.
The following are popular forms of healthcare policy that you may decide you want included in your plan by the insurance company. The specifics of your package and how much coverage is required, however, will depend on your employee’s health trends and goals.
The benefits you can include in your group health program are endless.
The rights and protections you will receive are determined by both the federal and state government you reside under. For federal rights and protections, you can go here for more information. For your rights and protections under state law, you should go to the websites specific to your state.
The state website to go to if you live in New York, for example, is the Department of Health’s website. There, you will find the rights and protections that apply to you.
A great many things are determined under the state law, which determine policies that pertain to your health care, like:
Look to independent insurance agencies like Taylor Benefits Insurance first. Independent agencies can help you get affordable health protection that covers preexisting conditions, lowers your healthcare costs, covers catastrophic care, and more.
A plan from an independent agency will be better than a package provided by the federal government or an established health care insurance company.
The top providers for small business medical coverage are:
These providers offer a variety of plans to fit the needs of small businesses, and they have a good reputation for customer service.
Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.
Todd Taylor with Taylor Benefits gives our small business the kind of personal service we need. Insurance benefits are important to our employees and Todd helps us find a balance between benefits and value. Todd responds immediately to my phone calls & e-mails. He has even gotten in touch with me on a Sunday when we were in need of coverage answers immediately. We are very pleased with the hands-on service Todd and his staff provide.”
-Ken and Linda Orvick, Orvick Management Group, Inc.
We’re ready to help! Call today: 800-903-6066