When you say employee insurance, most people have in their minds healthcare benefits that are extended to employees as part of their benefits package. This is not the complete picture, though, as there are insurance policies that protect employers from expensive and lawsuit-inducing mistakes made by employees. And there are also insurance plans that protect employers from the cost of paying treatment for an employee’s injuries that were sustained while at work.
For purposes of this article, though, we are going to focus on the type of employee insurance that will make employees stay instead of jump ship at the sight of a better employer.
Employee health insurance is not something that’s required by law, however, many employers offer them to their employees as part of their benefits package. Unfortunately for small business, paying for the cost of health insurance is not cheap and, together with other benefits like paid leave, a typical benefits plan would add 30% to 40% of the cost of maintaining employees. But there are several routes you can take to make it cheaper.
If you are a small business with fewer than 50 employees, research on the different trade association and business organizations in your state. It’s no secret that most healthcare insurers discriminate against small businesses. Aside from charging high premiums, it is normal for them to cancel a policy when it renewed. This is especially true for small businesses that had employees who called in sick and were hospitalized.
When a small business bands together with 50 other businesses that have a combined total of thousands of employees, insurers are less likely to cancel or charge higher premiums, unless if they want to smash against the entire organization head-to-head and lose a big account.
Aside from looking for a trade or business association, research on the laws in your state on non-discrimination by healthcare insurance providers against small businesses. Within the last few years states like California and New Jersey, among other states, have passed laws that create special provisions for small business healthcare insurance.
There are several types of company-based health care insurance. These include fee-for-service or refund-based insurance, PPO or HMO where employees choose their doctor and hospital from a list, Archer Medical Savings Account. For more details on each type of health care plan, you can find more information on the Internet.
If you are in the market for an employee healthcare insurance plan to offer it as part of your benefits plan, you should know that there are many insurers out there that offer these plans. Haylor.com offers some of the great insurance plans in Syracuse area of NY.
As we said earlier, though, many of these insurers tend to discriminate against small business. So if you have less than 50 employees, make sure to do more research than usual. Consult with an employee benefits expert to help you explore your options. It may cost you $1,000 upfront. But trust us, you will save more money down the line as you are making more informed decisions.