For small business owners, finding good employees can often be a difficult challenge. One of the best ways to help you attract and retain quality staff is to offer healthcare benefits. Providing employee health coverage will help ensure you have a healthier and more productive workforce. However, uncovering affordable health insurance for your small business presents its own set of obstacles.
With so many healthcare options to choose from, it’s important to review what your employees will need for coverage compared to your monthly budget. Here are a few ideas to consider when buying small business health insurance.
Learn some basic information about health insurance
“This is a good first step for those unfamiliar with the world of health insurance, which we know can be completely bewildering at times. Knowing some key health insurance terminology, as well as generally understanding how health insurance plans function, will both give you confidence going into the shopping process and prepare you to take full advantage of whatever plan you end up purchasing. This list of ten commonly used health insurance terms is a good starting point.
We also recommend knowing what’s legally required of you as a business owner when offering health insurance to your employees. In a nutshell, if you have fewer than 50 full-time employees, you are not required under the Affordable Care Act to offer employee health benefits. Learn more details here.”
Small business health insurance tax credits
“Under the Affordable Care Act, small business owners who have fewer than 25 full-time employees, who pay average wages of $56,000 or less, or who cover at least half of their employees’ premiums may be eligible for tax credits for their small group health insurance plans. These credits can lower the cost of your small business health insurance.”
Self-funded health plans vs fully insured
“If your health plan is fully insured, that means you buy health insurance from an insurance company. Most small to medium businesses opt for a fully insured plan because it limits the risk to the company and provides the most cost predictability.
If you have a self-funded plan, you create and operate your own health plan, usually with the assistance of a third-party administrator. The financial risks are greater with a self-insured plan, and costs are less predictable than they are with fully insured plans. However, some large organizations choose this approach because it saves money and they are able to tolerate the additional risk.
A third option is level-funded plans, which are self-funded plans that moderate the financial risk and look more like fully insured plans with “premium equivalents”. These plans offer some of the cost savings of a self-funded plan, but with less financial risk, combining the best of both worlds.”
Looking to fund up-front business health insurance costs?
If you find yourself in need of funding for your business, First Union Lending is here to help.
We have nine different business loan types to choose from. This means that we’re uniquely qualified to help you find the perfect loan for your small business.
Applying for a business loan doesn’t affect your credit. Better yet, your business loan may be approved as soon as the same day. To discuss our business loans with one of our lending experts, click here or call 863-825-5626.