Having access to valid health insurance makes it easier for individuals to seek out the medical attention they need to remain strong and healthy. If you are hoping to attract skilled employees to your small business, then offering access to quality health insurance could be a great way to accomplish this task.
Investing in a group health plan for your small business can be a daunting task, but when you take the time to consider these three things before purchasing a policy, you will be able to provide your employees with the quality health insurance they desire.
1. Consider how much you want to pay for health insurance.
A group health plan allows you to split the cost of the policy's premiums between your small business and the employees themselves. In order to determine which plan will best suit your small company's needs, you need to know how much you can afford to pay each month.
Some insurance companies require that employers pay a certain percentage of the policy, while others offer more flexible terms. When you know how much your company can afford to contribute towards employees' health insurance on a monthly basis, you will be able to identify the group plan that offer the most coverage within your budget.
2. Consider your company's cash flow and risk tolerance.
Many employers fail to take their company's cash flow and risk tolerance into consideration before purchasing a group health plan. It's important that you know how much money your company has coming in each month, and it is also important that you recognize your company's ability to tolerate fluctuating insurance premiums might be minimal.
To reduce your risk, you should consider investing in a defined contribution group health plan. These plans allow you to pay a predetermined amount for your company's portion of the monthly premiums. Knowing exactly how much you will pay each month allows you to use your company's cash flow as a guide in selecting the best plan for your employees.
3. Consider voluntary benefits.
While your company might only be able to afford to contribute towards health insurance, it can be beneficial to have a group plan that offers employees access to voluntary benefits that they can pay for themselves. Some popular voluntary benefits include dental insurance and wellness programs that reward employees for remaining healthy and active.
Taking the availability of voluntary benefits into consideration prior to purchasing a group health insurance plan will allow your employees to maximize the benefit your insurance plan provides by customizing their coverage through the addition of voluntary benefits.
When you know what you should consider before purchasing group health coverage, you can ensure that your small company's health plan meet both your needs and the needs of your employees. Contact a group insurance broker to learn more.
Share23 January 2017
