In part one of this series, we discussed the key terms, plan types, essential coverages and legal requirements to help small businesses better understand the basics of health insurance.
Now that we’ve already covered the basics, let’s discuss how these concepts can be applied to small businesses looking out for their employees.
A significant factor is the health insurance’s cost to employees. According to the CDC 
, over 6% of adults over 18 years old failed to obtain necessary medical care due to cost. To ensure that small business employees are adequately protected in the case of a medical emergency, employers need to have a full understanding of the costs associated with their offered plans.
In general, small business owners should find the right balance between the benefits that specific insurance plans can offer their workforce and the cost of these plans to themselves and their employees. But once you’ve decided on a plan, what can you do to mitigate excessive costs to your business?
While most employers choose to cover the majority of health insurance costs for employees, the exact amount small business owners will pay depends on the type of plan (HMO or PPO) and the metal tier (platinum, gold, silver, bronze) of the selected coverage.
Once employers have settled on a plan, there are several ways that they can manage costs and provide the best coverage without breaking the bank:
Certain plans combine Health Savings Accounts (HSA) with higher deductibles to provide employers with tax advantages and further flexibility in coverage. However, employers should make the deductible costs clear to their employees to avoid any miscommunication.Once an employer has decided on which plans to offer their employees, it’s their responsibility to educate and onboard their workforce on what the plans offer and how they stand to benefit from the provided coverage.
To simplify the insurance enrollment process for employees, small business owners should provide clear, concise details to employees through handouts or information sessions conducted by management or human resources personnel. Employers should also make sure to communicate enrollment deadlines clearly and prepare an enrollment checklist to employees to ensure that they’re prepared to make informed insurance decisions.
Helping employees understand their insurance coverage goes a long way towards promoting wellness, financial literacy, and transparency in the workplace, ensuring that your employees have all the tools they need to make the right decisions for themselves and their families.
While the Blue Cross Blue Shield health insurance marketplace can be overwhelming at first, it’s crucial for small business owners to become familiar with it if they want to provide the most appropriate coverage to their employees while staying within their budgets.
After determining that you qualify for small group health insurance, request your free quote . From there, research and compare the plans that best fit the needs of your employees and business.
Small business owners can purchase health insurance coverage during the Waiver Period, which begins November 1 and ends December 15. Purchasing coverage during the Waiver Period allows small businesses to take advantage of potential savings and flexibility that are not available outside of this timeframe.
Health insurance can be a difficult topic to navigate for business owners of any size. It can be overwhelming for employers to juggle evaluating employee needs, managing costs, educating employees and navigating the nuances of the insurance marketplace all at once, even under the best of circumstances.
Nonetheless, providing employees with the right health insurance coverage to meet their needs is an invaluable step towards fostering a work environment that prioritizes security, wellness, and transparency. As the health care and insurance industries continue to change, it’s important for small business owners to stay informed on every aspect of the health insurance they intend to offer, from the different types of comprehensive coverage to the various inpatient and outpatient services and everything in between.
