One of the best ways for a company of any size to attract more qualified employees and improve its retention is the health insurance package offered. More than the perks of time off and an optimized workspace, knowing your medical needs can be taken care of ranks high among the preferences of employees.
But when talking about the costs of a small business health insurance plan, owners inevitably wonder if this decision is financially better than the typical individual plans.
The short answer is that yes, small business insurance plans are less expensive in most cases than individual ones, and there are several reasons why this is the case.
Small Business Health Plans Versus Individual Plans: a Cost Comparison
A study conducted by eHealth found the average per-person premium for a small business plan was around 7% lower than the individual premium. The average deductible for an individual for small business plans was also 31% lower than the average deductible for individual coverage.
The reason for this is often that simply having a larger risk pool with small business coverage plans significantly helps spread the costs of risk for the insurer, leading to better offers. Additionally, the costs of individual plans can vary tremendously, based on the insurer chosen as well as the personal preference of the person looking for this coverage.
Other factors that can contribute to a lower cost for small business plans can include the possibility of employer contributions and tax benefits both for employees and employers
The Benefits of Small Business Health Insurance
Apart from the cost, small business health insurance coverage and yield many other benefits that can directly affect both employees and the company they work for:
- Boosting Morale – Employee morale is greatly improved when their company offers them an attractive health insurance package. This removes a lot of stress employees might be previously carrying regarding their health or even need to shop for an individual plan;
- Attracting Better, More Qualified Employees – A comprehensive health benefits package makes a company a lot more desirable for highly skilled people, which can be a tremendous asset when the company is looking for new talent;
- Protecting Business Operations – Many health coverages offer benefits for preventative care, which can empower employees to stay on top of their health needs. This can translate into less need for medical leave, ensuring company operations don’t suffer because of employee absentism;
- Remaining Competitive – The quality of your benefits package can help a company set itself aside from competitors. While the race is often centered around winning new clients and customers, acquiring and retaining better talent is also an amazing approach for small business to improve their operations and gain momentum in front of their competition;
- Embracing Emerging Trends – It’s becoming more and more common for businesses to offer employees health coverage, which likely means that at one point, those who don’t might stick out from the crowd, and for all the wrong reasons.
How Can You Make Sure Your Small Business Health Insurance Offers All These Benefits?
The secret to a small business health insurance plan that can truly make a positive impact on a small business lies in its personalization.
A benefits package must be tailored to the particular needs of your business and your employees to yield positive results throughout the entire company and its operations.
If you are looking for a new small or medium business healthcare plan, we at Design Health can help you access the right coverage that suits all your individual needs. Contact our team online for more information, or call our office directly at (720) 330-2283.