The dialogue over health insurance policies, programs and costs has become confusing for small business owners who just want good coverage for themselves, their dependents and their employees.
Terms such as public options and universal health care were not in the general vernacular just three years ago, but now the conversation about benefits and the pitfalls of a new national health care program has left small business owners and their employees worried about coverage options and related costs.
According to insurance industry associations, the best plan for small businesses, and also for larger companies and nonprofits, is to continue to offer employees the best available plans that can be purchased at the best possible costs. With employees increasingly sharing in the cost of health insurance coverage, business owners need to consider options that equally benefit employees and companies.
No one knows where the health insurance market will be five years from now. Today’s laws can be changed within the next year, depending on future election results on the local and national levels. Major portions of the healthcare legislation that passed several years ago also can remain unfunded, leaving parts of the plan or the entire plan in limbo.
Insurance Strategies For Businesses
The best strategy for business owners, according to one major insurance broker in the New York City area, is to work with experienced insurance companies that can help establish a year-to-year plan to provide owners and employees with the most comprehensive and affordable coverage. As changes to the market are implemented, this broker indicated that businesses that remain flexible will adapt well at the earliest opportunity.
Insurance brokers with extensive experience in designing benefit plans for organizations of all sizes can present a variety of packages that meet the financial and corporate culture requirements of a business or nonprofit. These brokers have access to all insurance carriers and the capability to service small and large group plans nationwide. The insurance products menu can include medical, dental, vision, life, accidental death and dismemberment (AD&D), and long and short term disability.
Insurance Homework
To begin a discussion with a current or new insurance brokerage company, anyone responsible for evaluating employee health insurance packages first should consider several key factors that affect costs and the levels of coverage. These include:
- Out-of-pocket maximum. This should be low. The out-of-pocket maximum is the combination of the co-payment, co-insurance and deductible for the maximum amount that a medical treatment will cost for an individual.
- Cost of coverage per month. This is known as the premium. The premium, which is the amount charged by the insurance companies to cover an individual over a period of time, should be low.
- Maximum deductible. This should be high. The deductible is the amount of loss that the insured pays during a calendar year before the insurance covers the remaining costs.
To learn more about business health insurance options, visit the Insurance Information Institute and read the article Small Business Medical Insurance Basics for Quality Coverage that appears on FinancialWeb.com .
Sources
- Insurance Brokers Association of New York
- National Association of Professional Insurance Agents
- Insurance Information Bureau
Mike Virgintino - Mike Virgintino is a marketing communications executive who has directed corporate, nonprofit and product branding initiatives that rely ...
