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Common Small Business
Health Insurance
Myths

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Health insurance can be confusing. There are so many different coverage options and costs for business owners. This confusion can make it even more difficult for small business owners to make the best coverage decisions for their employees in an ever-changing insurance marketplace.

While it can be difficult for small business owners to navigate insurance coverage, it’s crucial that decision makers can distinguish fact from fiction before choosing the right plan for their workforce. In this article, we’ll dispel some of the most common small business insurance myths and clarify the realities behind these misconceptions.

Myth: Most Small Businesses Can’t Afford Comprehensive Health Coverage

Fact: Small businesses can choose between several different plan types to ensure that their provided coverage aligns with their budget. Blue Cross and Blue Shield of Illinois offers a variety of different group plans and coverage options for small businesses, from HMOs and PPOs to higher-cost Platinum plans and more affordable Bronze options.  

Small business owners should familiarize themselves with the various employer costs associated with health insurance plans, such as how the differences between Platinum, Gold, Silver and Bronze plans impact employer and employee contributions. Still, no matter your budget, there’s sure to be an affordable BCBSIL health insurance coverage solution for your small business.

Myth: Small Businesses Are Required to Offer Health Insurance to Employees

Fact: Only businesses with 50 or more employees are required to offer health insurance, as per the Affordable Care Act Leaving Site. However, while small businesses with fewer than 50 employees are under no such obligation, not providing health insurance to employees comes with its own risks and hidden costs.

Health insurance coverage has been linked to increased employee well-being in and out of the workplace, alleviating the stresses of everyday life and easing financial burdens in case of an unforeseen medical emergency. These improvements also tend to lead to increased productivity and workplace satisfaction among members, helping employers foster an environment that prioritizes employee wellness while helping them succeed and grow alongside the business.

To learn more, read our previous article about the hidden costs of not having small business insurance.

Myth: Comprehensive Health Insurance Coverage Isn’t as Important to Employees as Retirement Planning, Flexible Work or Professional Development

Fact: According to the 2023 Employee Benefits Survey by the Society for Human Resource Management, 89% of employees prioritized health insurance coverage over other benefits. This put health insurance coverage well ahead of retirement savings and planning (81%), flexible work (70%) and professional and career development (67%).

While health insurance coverage is only a small part of any company’s overall benefits package, the financial security and peace of mind offered through comprehensive health insurance is most likely top of mind for new and existing employees alike. From covering family members’ medical costs to covering mental health resources and much more, there are plenty of reasons why comprehensive health insurance coverage is an invaluable asset for small businesses looking to attract and retain talented employees.

Myth: Small Business Health Insurance Coverage is Typically Narrow and Does Not Include Mental Health Services or Prescription Drugs

Fact: Comprehensive health insurance coverage from BCBSIL can include a broad spectrum of services for all employees. Maternity care, prescription drug coverage, emergency care, Health Savings Accounts and mental health resources are only a small sampling of what members can expect to have covered under their comprehensive small business health insurance plan.

Employees also can take advantage of Employee Assistance Programs and other behavioral health resources at no additional cost, further widening the scope of available benefits under a comprehensive health insurance plan. Additionally, with telemedicine solutions becoming more and more commonplace, your employees can receive assistance without even leaving their homes.

Myth: Small Businesses Can’t Take Advantage of Insurance-Related Tax Benefits

Fact: Through the Small Business Health Care Tax Credit, qualifying small businesses can take advantage of significant tax deductions and financial incentives that can help employers balance their budget.

Small businesses with 25 or fewer employees may qualify for this benefit, which can provide a tax credit worth up to 50% of the premiums paid for employee health insurance. This credit can cover a substantial portion of health insurance costs, further empowering small businesses to spur growth and offer other competitive benefits to employees.

Conclusion

Small business health insurance can be confusing, but by learning to separate myths from realities you can better equip your small business to provide the right comprehensive coverage to your employees. From expanded mental health resources to valuable tax credits, there’s plenty of substance just below the surface of small business health insurance coverage.

To learn more about small business insurance coverage options for your company, call  1-833-923-1784 or fill out this form Leaving Site to get a personalized quote today.

Material discussed is meant for informational purposes only, and it is not to be construed as medical, financial, tax or legal advice. BCBSIL does not offer medical, financial, tax or legal advice. You are strongly encouraged to seek individualized advice from qualified medical, financial, tax and/or legal experts regarding the best options for your particular circumstances.

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