Healthcare Plans

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Among all of the benefits you can give to an employee, a healthcare plan is one of the best benefits you can offer. Many business owners and employees would agree with the latter statement as, after all, everyone needs healthcare services at some point in time.

To top it off, healthcare is not cheap. Many Americans are unable to pay out of pocket for their general healthcare needs. According to Health System Tracker, the costs of healthcare in the United States is nearly double what other wealthy nations pay. In 2016, the average per capita spending on healthcare for an American was $10,348.

For the latter reason, employees genuinely appreciate receiving healthcare benefits. After all, many individuals’ annual incomes are typically not enough to help pay for those unexpected, ever-growing costs of going to a medical professional. Likewise, only about 47% of Americans have a sufficient emergency fund for health-related events.

With that said, you may be strongly considering providing healthcare plans for your employees soon. If this is the case, the following information will be of great use to you as you consider the importance, realities, and pros and cons behind offering such.

Consider the advantages of offering your employees healthcare benefits.

As a business owner, you have to be a bit selfish. Of course, you’re going to want things to work out in your favor and benefit you and your business. In terms of healthcare plans, you bet that giving these to your employees will be of benefit to you personally.

Although offering healthcare coverage to employees is certainly not free for you, what you can benefit from our tax advantages. Additionally, offering a health insurance plan for your staff can make it easier to recruit new employees. Likewise, employees will be more likely to stay on your team if they are offered health insurance.

Even if your employees have worked for you for many years and genuinely love what they do, if they are not happy with the lack of benefits they are receiving, they will take their employment elsewhere where they will receive such. This is especially true if they have a family or are getting ready to start one soon.

Remember why it’s important that your employees get a healthcare plan.

It’s not just about how healthcare plans will benefit you and your business; these plans can certainly benefit your employees as well. When you’re unsure whether or not providing such plans to your employees will be worth it, you must consider how these benefits will be helpful for your staff.

Having healthcare benefits can allow your employees to get coverage for both their basic and emergency health care, sometimes even vision and/or dental care as well. With coverage for several medical services, your employees will have less stress on their plates knowing they won’t have to pay in full for such care if and when they need it.

When your employees are able to get the medical care or treatment they require, they are less likely to take days off work. Likewise, without at least part of their medical bills covered, they may exhibit less financial stress, and thus, be in a better, more positive state of mind while at work.

Business aside, you should always want your employees to have good health and wellness. However, when your employees are happy, safe, and well, so are you, your customers, and the rest of your employees. There’s no doubt about that.

Keep in mind the expenses you’ll have to pay.

Although money isn’t everything, it’s still vital that you understand what you’ll have to pay to provide healthcare for your employees before you decide to provide these benefits. After all, as a businessman or businesswoman, managing your finances properly is critical to keep your business afloat.

The truth is, the cost of providing health insurance for your employees can vary quite a bit. This will depend on your location, contribution strategy, employee census, insurance carrier, the type of plan you choose, and the network of providers offered.

However, on average, it costs employers approximately $5,179 annually to cover a single employee or $12,591 annually to cover a family. Many small business owners may run when they hear about these costs.

Consider the fact, however, that there are mandates in the United States, like the Affordable Care Act, that require certain businesses to provide healthcare plans for their employees.

Think about the tax advantages.

Especially if they are forced by law to provide healthcare benefits to their employees, business owners may cringe as they think about the costs they’ll have to pay. However, keep in mind that there will be tax advantages for you when you do offer these plans.

Fortunately, the money you pay to offer healthcare plans for your employees is 100% tax deductible on both state and federal income tax just like any other business expense. Thus, this increases your take-home pay as the business owner and reduces how much taxes you’ll owe for the year.

Additionally, it’s important to note that thanks to the Affordable Care Act, small businesses are offered tax credits to help alleviate the cost of providing health insurance for their employees.

Prepare for the administrative hassles of providing healthcare plans.

While offering health benefits to your staff is surely advantageous for both you and the employees receiving such, it’s important that you’re not so focused on the pros that you’re blinded from the cons.

Although it’s not a dealbreaker, it’s still vital to inform employers that there are administrative hassles involved in offering healthcare plans. For instance, as the business owner, you must find the right plan for your employees, fill out the appropriate forms, remit premiums, and mediate between the insurer and your employees.

It’s not as easy as simply filling out paperwork to get healthcare plans you want for your employees and then calling it a day. Keep in mind that it is your responsibility to regularly engage in the regular administrative work involved in providing continuous healthcare coverage for your staff members.

Contemplate your health insurance options.

Researching the different healthcare plans options you have at hand to offer your employees is important to ensure you select the right one. Without checking out all of the options, it can be difficult to know that you’re providing the best and most relevant plan for your staff. After all, they only deserve the best.

Most small business owners choose to supply their employees with traditional health insurance. This type of health insurance tends to be the most flexible and convenient as it will allow your employees to visit any doctor and any hospital that they wish. However, it is also a little more expensive.

Other types of health insurance options small business owners can offer their employees include the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), group coverage health reimbursement arrangements (HRAs), self-funded health insurance, and association health plans.

Closely evaluate a plan’s policy before committing to it.

It’s not enough to select a type of health insurance to offer your employees; it’s also important that you take a close look at each plan’s policy that you are interested in to determine if it will be right and most applicable for your employees. Healthcare plans are never a one fits all.

There are four main criteria you should consider when it comes to evaluating a plan’s policy. These include the following:

  1. Costs: The plan and co-insurance costs and deductibles
  2. Coverage: Types of conditions and treatments covered along with the total coverage amount.
  3. Restrictions: Incompatibilities with your business and the plan (e.g., Some plans won’t allow healthcare coverage out of state, which would be convenient for your employees if they travel a lot for their job.)
  4. Reimbursement: The reimbursement levels for different procedures.

Once you have a clearer vision in regard to the health insurance type, coverage, and plan policy most applicable to your business and employees, the next step is to find the right insurance agency to provide such.

As you look for the best insurer, it’s important to consider their customer service, their appeal process, and the number of rejected claims they have. Conduct research online to see what other people have to say regarding their experience with the insurance agency you’re considering going through.

For more information regarding providing the best healthcare plans for your business’s employees, visit OurUrgentCare.com.

Conclusion

Offering your employees healthcare benefits can be one of the best things you can provide for them apart from their hard-earned salary. Doing so can not only help them pay for their much-needed healthcare but can also have a positive impact on your employee retention and business as a whole.

As you select the right healthcare benefits for your employees, it’s vital that you consider the costs, the disadvantages it places on you, and the types of healthcare options and what different policies state. It may sound like a big task, but it’s certainly possible to find the right healthcare plans for your employees with the right effort.

About The Author:

Stacey Smith is a freelance health writer. She is passionate to write about women’s health, dental health, diabetes, endocrinology and nutrition and provide in-depth features on the latest in health news for medical clinics and health magazines.