While many employees across the country want their company to offer health insurance, for business owners finding the right plan can be a rather daunting experience. On top of this, small businesses, in particular, may worry about the cost of such a benefit, and whether their budget can comfortably accommodate it.
But for a lot of businesses, the benefits of health insurance plans for workers can drastically outweigh the costs.
What Are the Benefits of Small Business Health Insurance?
There are several compelling reasons why small business health insurance plans can benefit both the employees and the business:
- Increased Employee Satisfaction – Health insurance is a highly desirable benefit among many employees across the country;
- Recruiting Better Employees – A comprehensive health insurance plan can make any small business more desirable in the face of potential, highly-skilled employees;
- Creating a Healthy Company Culture – Offering health benefits can help small businesses foster a better company culture by encouraging Health and Wellness initiatives;
- Increase Employee Retention Rates – When employees are more satisfied with their job and the benefits it offers, they are much less likely to seek other professional opportunities.
What Is the Cost of Small Business Health Insurance?
Understanding the cost of a health insurance plan is essential for business owners. However, basing the decision solely on average costs alone is not wise, as there is a lot of variation among insurers. Additionally, the insurance plan itself can also factor in tremendously and influence the cost of the small business health plan.
The average cost of such a policy can, however, provide small business owners an idea as to how much such benefits would cost, at least theoretically.
According to a 2020 KFF study, the average costs for employer-sponsored health coverage were as follows:
- $21,342 for family health coverage, with employers paying an average of $15,454;
- $7,470 for single coverage, with employers paying an average of $6,227.
While nobody can ignore the costs, offering health care coverage can still be quite beneficial in the long term for both companies and employees. Many small businesses with 50 or fewer employees which are not required by law to offer health benefits still do so. Around 53% of small businesses offered employees health insurance coverage in 2020.
Additionally, when comparing the average costs of premiums with previous years, the study also noted the increases in premiums were *modest and consistent” with previous years. For instance, premiums for employer-sponsored family healthcare coverage only increased 4% from the previous year. No major changes were observed regarding contributions or cost-sharing.
Small Business Healthcare Plan That’s Right for You and Your Employees
DesignTM Health is a brokerage company with the goal of helping small business owners navigate the world of health insurance, and make better-informed decisions for their employees. Our services can help you access a customized plan that directly addresses the needs of your company and employees.
Additionally, the DesignTM Health team is here to assist business owners in understanding the complexities of health insurance and provide them with support and assistance when they most need it.
To get started, you can reach out to DesignTM Health online or call us at (720) 330-2283 today to find out more about how we can help you access the best healthcare insurance plan.