Reasons to Employer Health Insurance
- Employee Recruitment and Retention – Businesses that offer group medical coverage report there are several advantages to doing so. Having group medical coverage may: lower your hiring costs, reduce absenteeism, and improve employee morale.
- Manageable Costs and Financial Security – People with health coverage are protected financially from burdensome debts arising from major illnesses or injuries. The need for medical services often arises unexpectedly, and the costs typically exceed what most people can afford or want to pay.
- Better Access to Care – People who have health coverage are in a better position to obtain medical care, including preventive services that may help avoid future serious health problems and encourages them to maintain their health.
- Tax Benefits for Your Business – The Affordable Care Act offers small businesses healthcare tax credits to help offset the cost of insurance. The small business healthcare tax credits have been available since the 2010 tax year.
“Neal Lange has been our insurance agent for 27 years. He stays on top of our needs and is always available to answer any questions or concerns that might arise. I am so confident in his handling of the yearly renewals, from pricing to products that are available, that I don’t even get other quotes from the many requests that I get throughout the year. It is very helpful not to have to deal with other reps.”
Janet W. King
President, Universal Ornamental Iron
The cost of providing small business health insurance depends on a few factors.
- The scope of the benefits you’re providing.
- Who you’re covering (just employees or employees plus dependents).
- The percentage of the premium that you’re going to cover.
The best way to budget for these costs is either as a percentage of your payroll or as a monthly, per-employee cost.
- Determine your budget and the premium percentage you’d like to cover
- Gather information about your employees
- Choose a plan type, such as HMO, PPO, or POS
- When comparing plan options, consider your employee demographics and health needs.
To qualify for a tax credit of up to 50% of premium expenses for any two years, small business owners must pay at least half of employees’ healthcare premiums and have 25 or fewer full-time equivalent employees who earn an average of $50,000 or less per year.
While I do represent many highly-rated employer health insurance companies I am an independent broker and, as such, will always strive to do what’s best for my clients. That means helping my clients select the right insurance policy from the insurance company that best suits their needs.