145 - Why You Need to Offer Health Benefits to Your Employees with Holly Peppler
Affordable Healthcare Options for Small Business Owners: Understanding Your Choices and Finding the Right Coverage
“Offering a spread of benefits, even for small employers, can make a huge difference and can really help with retention and with finding new employees.”
Are you a small business owner struggling to afford healthcare coverage for yourself and your employees? You're not alone. The cost of healthcare continues to rise, leaving many SMBs wondering how they can provide necessary coverage without breaking the bank. However, there are options available to help make coverage more affordable and accessible. In this article, we'll explore some of these options, including group health insurance, Health Savings Accounts (HSAs), and the Marketplace (Healthcare.gov). We'll also discuss the value of offering additional benefits such as dental, vision, and life insurance, and the advantages of working with a benefits partner. By taking the time to carefully consider your options and choose the right coverage, you can help ensure that you and your employees have the protection you need.
When it comes to healthcare costs, it's important to understand the various terms and charges that may be associated with your plan. A copay is a fixed amount that you pay for a covered healthcare service, such as a doctor's visit or prescription medication. A deductible is the amount that you must pay out-of-pocket before your insurance begins covering your healthcare costs. Coinsurance is the percentage of the cost that you are responsible for paying after you have met your deductible.
A Health Savings Account (HSA) is a type of savings account that allows you to set aside pre-tax money to be used for qualified medical expenses. HSAs are often paired with high-deductible health plans and can be a useful way for SMBs to save on healthcare costs. Contributions to an HSA are tax-deductible, and the funds in the account can be used to pay for copays, deductibles, and other qualified medical expenses.
The Marketplace, also known as Healthcare.gov, is a website run by the federal government that allows individuals and SMBs to shop for and compare health insurance plans. It is a useful resource for those who are self-employed or do not have access to employer-sponsored health coverage. The Marketplace offers a variety of plan options, including those that are eligible for premium tax credits, which can help make insurance more affordable.
Group health insurance is a type of coverage that is offered to a group of people, such as employees of a small business. SMBs can offer group health insurance to their employees as a way to attract and retain top talent. There are several ways that SMBs can get group health insurance, including working with a broker or purchasing coverage directly from an insurance company.
“If somebody tries to charge you for a quote, run the other way. That’s not how our business works.
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A health insurance broker is a professional who helps businesses and individuals find and enroll in health insurance plans. Brokers are licensed and trained to understand the various plan options and can help you determine which coverage best meets your needs and budget. Working with a broker can be particularly beneficial for SMBs, as they can help you navigate the often complex process of obtaining group health insurance.
There are certain requirements that must be met in order to offer group health insurance to your employees. These requirements vary by state, but generally, you must have at least two full-time employees to be eligible for group coverage. Additionally, group health insurance is typically paid for by both the employer and the employee, with the employer paying a larger portion. There are several payment strategies that SMBs can use to make group health insurance more affordable, including offering employee contributions on a pre-tax basis and implementing a wellness program.
When setting up benefits for your employees, it's important to carefully consider your budget and the needs of your workforce. Determine how much you can afford to contribute towards healthcare coverage and other benefits, and consider offering a range of options for your employees to choose from.
Offering health benefits to your employees can have a number of benefits for both your business and your workforce. For your employees, having access to healthcare coverage can help reduce financial stress and improve overall health and well-being. For your business, offering health benefits can help attract and retain top talent, as well as improve overall productivity and morale.
In addition to healthcare coverage, it can also be beneficial to offer dental and vision coverage to your employees. Dental coverage can help with the cost of routine cleanings, fillings, and other necessary procedures. Vision coverage can help with the cost of eye exams, glasses, and contact lenses. Offering both dental and vision coverage can help your employees maintain good oral and eye health, which can lead to improved overall health and well-being.
Open enrollment is the period of time during which individuals and SMBs can enroll in or make changes to their health insurance coverage. Open enrollment periods vary by state and insurance company, but they typically occur once a year. It is important to carefully review your coverage options during open enrollment to ensure that you have the coverage that best meets your needs.
Besides healthcare coverage, there are a number of other benefits that SMBs may consider offering to their employees. These can include life insurance, disability insurance, and retirement plans. Offering these types of benefits can help improve overall financial security for your employees and can be a valuable addition to your employee benefit package.
Working with a benefits partner can help simplify the process of setting up and managing employee benefits for your SMB. A benefits partner can help you understand your options, enroll your employees in coverage, and handle ongoing benefits management. Having a benefits partner can also free up time and resources for you to focus on running your business.
When choosing a benefits partner, it's important to look for a company that has a strong reputation and a proven track record of helping businesses like yours. Look for a partner that offers a range of coverage options and has knowledgeable and helpful customer service staff. It can also be helpful to choose a partner that offers additional services, such as HR support and employee communication resources.
There are a few red flags to watch out for when choosing a benefits partner. Avoid partners that pressure you to make a decision without fully explaining your options or that charge hidden fees. It's also important to choose a partner that is transparent about their pricing and policies.
Healthcare costs can be a significant concern for small businesses (SMBs) looking to provide coverage for themselves and their employees. There are a variety of options available, including group health insurance, Health Savings Accounts (HSAs), and the Marketplace (Healthcare.gov). Working with a health insurance broker can also be helpful in finding the best coverage for your business. SMBs may also want to consider offering additional benefits such as dental, vision, and life insurance to improve the financial security and well-being of their employees. Choosing a benefits partner can simplify the process of setting up and managing employee benefits. By taking the time to carefully consider your options and choose the right coverage, SMBs can help ensure that they and their employees have the protection they need.
All SMB owners want to take care of their employees. Yet so many businesses fail to offer health benefits to their workers. Holly Peppler of Strategic Benefits Partners joins us to break down the misconceptions business owners have around health benefits and provide us with a clear path to offering employees better benefits without breaking the bank.
Time Stamps
00:19 - Healthcare in the 1970s
01:34 - Health Insurance Changes Before & After Obamacare
04:24 - Intro to Holly Peppler
04:58 - How Much Does Healthcare Cost Nowadays?
07:33 - Understanding Copay, Deductibles, & Coinsurance
12:10 - Health Savings Account (HSA)
16:42 - Healthcare.gov / The Marketplace
18:15 - How SMBs Can Get Group Health Insurance
20:08 - Working with a Health Insurance Broker
23:39 - Group Health Insurance Requirements & Payment Strategies
25:57 - Setting Up Benefits & Determining Thresholds
28:59 - The Value in Offering Health Benefits to Your Employees
29: 33 - Dental & Vision Coverages
30:30 - Understanding Open Enrollment
33:56 - Life, Disability, & Other Benefits
37:07 - The Advantages of Having a Benefits Partner
40:05 - What to Look for in a Benefits Partner
42: 37 - Benefit Partner Red flags
Quotable Moments
“If somebody tries to charge you for a quote, run the other way. That's not how our business works.” - Holly Peppler
“I think a really important thing for business owners to understand as they think about benefits is that the option really matters for you when recruiting employees.” - Khalil Benalioulhaj
“Offering a spread of benefits, even for small employers, can make a huge difference and can really help with retention and with finding new employees.” - Holly Peppler
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