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Making health insurance cheaper for small businesses

Article by David Mayer









Health insurance spendings account for a large part of business activity costs, and their share is especially large with small businesses and home-based enterprises. And with the continuous trends in rates increase it’s getting harder and harder for small enterprises to carry this burden, causing many small businesses to drop health coverage benefits altogether.

A recent study conducted by the Commonwealth Fund in New York has concluded that small businesses tend to pay 18% more for health insurance than their larger counterparts all across the country. That’s because large enterprises have a better negotiating power due to larger numbers of workers to be insured. Having that in mind, being despaired about the thing won’t help your small business much. About 60% of 46 million people in the US who have no health insurance coverage are employed by small enterprises and these numbers keep on growing. Such tendencies are no good news for small businesses, because qualified and better workers tend to pay much attention to health benefits at the enterprise and not having them lowers your chance of attracting workers who will help develop your business better.

In order to cope with the Catch 22 situation here, you have to learn how to minimize your healthcare costs and provide your employees with the benefits they deserve. Here are some tips on how to get exactly what you need:

1. Keep the workers healthy. Instead of fighting the consequences and paying for costly medical coverage, you can invest into your workers’ health and promote different wellness programs at your business. Introduce regular screenings, check-ups and promote a healthy lifestyle by offering your employees free gym sessions or other benefits. It’s much easier to prevent a disease rather than treat it.

2. Lower the coverage. Larger coverage amounts lead to higher premiums and a logical solution for this would be lowering the coverage. You can also ask your employees to partially contribute to the premiums if they want to keep the initial coverage amounts. Of course, this would be quite unpopular among your employees but if your small business insurance plan is in question you have to consider going with such unpopular measures.

3. Think about HSAs. Health savings accounts are gaining popularity amongst small business owners as they provide more flexibility and tax benefits than typical health insurance options. HSAs combine high-deductible health insurance plans with tax-free savings accounts, making the premiums you have to pay lower, and providing more saving options to your employees. And the fact that all withdrawals are tax-free makes it a great option for those who want to get great small business insurance health coverage without constraining the enterprise’s budget.

4. Team up with other small businesses. You can join an association or buying union who other local small businesses in order to gain better rates. Such associations provide small enterprises the bargain power of big companies because when combined, such groups have a large number of employees to be insured which eventually leads to more competitive premiums compared to going off alone. Member fees are usually quite low with such groups while the benefits are great, so think about joining one of you have in your area. This might give you good rates on other forms of small business insurance as well.



About the Author

If you are interested in the point of view expressed by David Mayer, visit http://www.buysmallbusinessinsurance.com/articles/health-insurance-for-small-businesses.html for more of his professional writing on a whole array of topics that relate people all around the world.










www.business.com Understand general liability insurance for your small to medium-size business BIO: Tim Gaspar is the owner of Gaspar Insurance Services. TRANSCRIPT: Hello. My name is Tim Gaspar with Gaspar Insurance Services. We insure small and mid-sized businesses and handle their insurance needs. Today I am going to talk a little bit about general liability insurance, what exactly it is, and how much you need as a business owner. Having general liability insurance is the absolute basis of any insurance. I would say that if you could only afford to have one insurance, I think for most businesses general liability would be the insurance they would get. It is the absolute foundation to having your business insurance in place. Essentially, general liability insurance is the protection you have in the event you’re responsible, or your business is responsible for causing damage to a person or to property. And this can happen in a number of different ways. One of the most common is with a vehicle accident. Let’s say your company trucks gets into an accident. You hit somebody and damage their car, and let’s say they get injured. If they file a lawsuit against you, that’s covered under your general liability insurance. Along the same lines, let’s say you are manufacturing a product of some kind. Let’s say for instance that you are a pistachio distributor. If you distribute pistachios and the people that eat them end up getting sick, let’s say you get sued in a class action
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