Business Health Insurance Plans

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Business Health Insurance

Why is it Essential?

  • Employee Well-being: Healthcare is a fundamental need. By providing health insurance, you ensure your employees have access to medical care when needed.
  • Attract and Retain Talent: Offering health benefits makes your company more attractive to potential employees and can be a deciding factor for many when choosing where to work.
  • Financial Security: Medical emergencies can be expensive. Insurance protects your employees from unforeseen medical expenses, ensuring their financial stability.
Choosing The Right Health Insurance Plan For Your Employees

Best Employee Health Insurance Plans

Deciding on the best employee health insurance plan for your small business is a big decision. You want to offer a benefits package that attracts and retains the best employees, but you also want to keep costs under control. There are a few things to consider when choosing a plan. First, you must decide whether to offer a PPO, HMO, or HDHP/HSA plan. Each has pros and cons, so evaluating your needs and preferences is essential before choosing.

Here’s a comparison chart of the three types of business health plans: PPO, HMO, and HDHP/HSA.

Feature/AspectPPO (Preferred Provider Organization)HMO (Health Maintenance Organization)HDHP/HSA (High Deductible Health Plan/Health Savings Account)
Network FlexibilityHigh. You can see any doctor or specialist without a referral, including those outside the plan’s network. However, out-of-network care might be more expensive.Limited. You generally need to get care within the network and require a referral to see a specialist.Similar to PPO. You can see any doctor, but you’ll save money by using the insurance’s preferred providers.
Premium CostsTypically higher than HMOs.Typically lower than PPOs.Lower premiums compared to PPO and HMO.
Out-of-Pocket CostsCan be higher if you see out-of-network providers.Generally lower, especially if you stay within the network.Higher deductibles, but can be offset with an HSA.
Referrals RequiredNo.Yes, to see specialists.No.
Health Savings Account (HSA) Not applicable.Not applicable.Yes, can be paired with an HSA to cover out-of-pocket expenses with pre-tax dollars.
Coverage AreaBroad, suitable for those who travel or live in multiple locations.More localized, best for those who live and work in the same area.Broad, similar to PPO.
Preventive ServicesOften covered at no extra cost.Often covered at no extra cost.Often covered before the deductible is met.
Primary Care Physician (PCP)Not required to choose one.Required to choose and see a PCP for referrals.Not required to choose one.
  • Second, consider the cost of the premiums and the deductibles.
  • Third, aim to offer an affordable plan for your employees that provides adequate coverage.
  • Finally, decide if offering additional dental or vision coverage benefits is beneficial.
  • Carefully evaluate your options to choose the best employee health insurance plan for your business.
Business Health Insurance Plans

Corporate Health Insurance Plans

A corporate health insurance plan is an insurance plan that a company purchases on behalf of its employees. There are many benefits to having a corporate health insurance plan, including the following:

  • Employee retention: Employees with access to good health insurance are likelier to stay with a company than those without. Good health insurance is often hard to come by, and employees value the security and peace of mind that comes with having good health insurance.
  • Recruitment: Good health insurance is also a great recruiting tool. It can help a company attract top talent, as potential employees value good health insurance, security, and peace of mind.
  • Cost savings: A corporate health insurance plan can also save a company money in the long run. This is because healthy employees are more productive and take fewer sick days than unhealthy employees. In addition, a corporate health insurance plan can negotiate better rates with healthcare providers than an individual could on their own.
  • Tax breaks: In some cases, a company may be able to get tax breaks for providing their employees with health insurance. This can further reduce the cost of having a corporate health insurance plan.

health insurance plans for mid-size business owners

For mid-size business owners looking at health insurance plans, options vary based on location, budget, and specific business needs. Here are general steps to consider:

  • Assess Needs: Determine the needs of your employees and business, including budget constraints.
  • Shop Around: Compare plans from different insurance providers. Look for group health insurance options suitable for mid-size businesses.
  • Consider Plan Types: Choose from HMOs, PPOs, EPOs, or HSAs, depending on what best fits your business and employees.
  • Check Legal Requirements: Ensure compliance with local and federal laws, like the Affordable Care Act (ACA).
  • Consult a Broker or Agent: They can help navigate options and find a plan that balances cost with benefits.
  • Communicate with Employees: Get feedback from your team about their needs and preferences.
  • Review and Adjust Annually: Healthcare needs and insurance offerings can change, so it’s wise to reevaluate your choices each year.

Average Out of Pocket costs for Employees

According to a recent study, the average out-of-pocket cost for employees is $4,700. This figure includes both individual and family coverage. Out-of-pocket expenses are rising faster than wages, so families have to spend more of their income on healthcare. There are several reasons for this trend.

  • First, deductibles have been rising steadily in recent years.
  • Many employers have been shifting to high-deductible health plans. But unfortunately, employees must pay more for their care before their insurance increases.
  • The cost of prescription drugs has also been rising.

As a result of these trends, families are increasingly struggling to pay for healthcare. One way to help offset these costs is to purchase a health insurance policy with a lower deductible. However, this may not be an option for everyone.

Another option is to shop around for healthcare services. For example, some hospitals offer discounts for cash payments.

Finally, families can also try to negotiate prices with their providers. Although it can be challenging, doing so can help to save money on healthcare expenses.

Best Health Care Plans For Mid Size Business

Companies that provide Corporate Health Plans

As healthcare costs continue to rise, more and more companies are looking for ways to provide their employees with affordable health coverage. One way to do this is to purchase a corporate health plan. These plans are designed for businesses and can offer various benefits, including prescription discounts, vision care, and health club memberships.

Best Corporate Health Plan Companies

  • Aetna
    • Reputable provider with various plan options.
  • Blue Cross Blue Shield
    • Reputable provider offering a range of plan choices.
  • Cigna
    • Reputable provider with diverse plan options.
  • United Healthcare
    • Offers both traditional and consumer-driven health plans.

Next Steps

Now that you understand the different types of health insurance plans, it’s time to decide which is best for your business. If you would like more information or would like to request a quote, please get in touch with us today. We would happily help you find the right plan for your company and employees.

Request A Quote

Contact us today if you want personalized service from a licensed insurance agent. Free of charge.

General Insurance Inquiry

Frequently Asked Questions

Which type of insurance is offered to all employees by the employer?

Group health insurance is a comprehensive plan that protects employees’ safety and well-being by protecting them from medical costs.

What is health insurance through an employer called?

Employer-sponsored insurance, often called employer-provided health insurance, is a valuable benefit employers can offer their workers and dependents. Through your job, you may be able to access a variety of group health plans tailored for you or your family member’s needs – with part of the premium provided by your employer!

What types of health coverage do most employers provide to their employees?

If your employer opts to provide healthcare benefits, you’ll be presented with various health insurance choices. The two most common types are Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). Whether you select, both plans offer exceptional coverage for all medical needs!

What type of insurance must an employer have and why?

As a small business, the only legal policy you must possess is employers’ liability insurance (EL). This coverage protects your company if one of your employees alleges they were wounded or became ill due to working for you.

What are at least two types of insurance commonly offered to employees at work?

Are you considering offering employee benefits? The most popular types of insurance are Medical, Life, and Disability. All three can provide essential coverage for your employees so they feel secure in their roles with your business.

Why is health insurance important to employees?

Health insurance offers financial protection against high medical costs, ensures access to healthcare, and supports employee well-being. It boosts productivity by reducing absenteeism and is key in attracting and retaining talent, showing employer commitment to employee health.

What do corporate health insurance providers offer?

Corporate health insurance providers are companies that offer healthcare coverage to businesses and their employees. They provide a range of plans tailored to meet the needs of different organizations, from small to large. These providers help employers manage healthcare costs and provide employees with access to quality medical care.

What does health insurance for my business offer?

Health insurance for your business can provide crucial coverage for your employees’ medical expenses. It offers financial protection against unexpected healthcare costs and helps attract and retain talented staff. By offering a comprehensive health insurance plan, businesses can prioritize the well-being of their employees and ensure their long-term success.

How should you compare corporate health plans?

Compare corporate health plans to find the best option for your employees. Consider factors like coverage, cost, network, and additional perks. Evaluate the plan’s flexibility, wellness programs, and prescription drug benefits. Understanding employee needs and preferences will help you make an informed decision.

How do business owners get health insurance?

Business owners can get health insurance in various ways. They can purchase individual plans through the Health Insurance Marketplace or join a professional organization to access group plans. Another option is to hire employees and offer group health insurance as a benefit. Additionally, they can explore options like COBRA or spouse’s employer-sponsored plans.

Who chooses a health insurer for employees?

In most cases, it is the employer who chooses a health insurer for employees. Employers take into consideration factors like cost, plan options, and the needs of their workforce when selecting a health insurance provider. However, in some cases, employees may have the opportunity to choose their health insurer through employer-provided options or in a marketplace setting.

What do health plans for medium businesses cover?

Health plans for medium businesses provide comprehensive coverage and benefits for employees of these companies. These plans are designed to cater to the specific needs of medium-sized businesses, offering a range of options for healthcare coverage, including medical, dental, vision, and prescription drug benefits. With competitive pricing and tailored solutions, health plans for medium businesses ensure that employees have access to quality healthcare services.

What are the best ways to buy small business health insurance?

The best ways to buy small business health insurance include exploring options through insurance brokers, using private exchange platforms, or directly purchasing plans from insurance companies. Business owners must assess their employees’ healthcare needs and budget before selecting a suitable plan.

*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost to you if you purchase a policy. It helps us keep the lights on!

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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