Is Your Business Growing? Time to Update Your Business Health Insurance
As your business grows, things like your insurance needs will change. One of the most important types of insurance to consider is health insurance, and this guide will discuss why updating your business health insurance is essential.
You may need to look into new health insurance for your employees, but one of the biggest reasons is that you have to. Businesses with 50 or more full-time employees must offer their employees health insurance coverage or pay the penalty each month that they do not provide adequate coverage.
If you think you will soon be an employer with 50 or more full-time employees or are looking to renew your coverage, now is the time to start researching new coverage and finding the best option for you and your employees.
Look for the Most Cost-Effective Option
When it comes to updating your business health insurance, it’s essential to look for the most cost-effective option to ensure your company and employees are being taken care of. While some companies may offer plans that appear less expensive than others, they might not be as comprehensive or “cheap” once you examine the overall investment. Businesses should know what to look for to prevent overpaying for their health insurance plans (and keep up with business trends).
The following are five ways you can narrow down your options before purchasing a new plan:
- Check your spending habits
- Examine what is available with subsidies
- Understand employee needs
- Review the plans offered by other companies
- Consider going smaller
Update Your Insurance to Reflect Your Current Needs
At the start of a new year, it’s usually a good time to review your business health insurance policies. If you have employees, take the time to update your insurance to reflect your current needs. Also, make sure that you comply with federal and state regulations for providing health insurance for your employees.
For example, suppose you’ve had an uptick in claims because of increased employee injuries or illnesses or added employees to your company. In that case, you may need to adjust the amount of coverage you carry on your business health insurance policy.
If you haven’t made any changes to your company, reviewing your policy with an insurance agent still makes sense.
Find Out If You’re Eligible for New Tax Credits
If you’re a small business owner, you may be eligible for new tax credits or deductions. However, you may not be aware of them unless you ask. Several years ago, the IRS created the Small Business Health Care Tax Credit to encourage small businesses to offer health insurance coverage to their employees. The credit is available to employers that meet specific criteria, including having fewer than 25 full-time employees and paying average wages below $56,000 per employee.
Since then, the Affordable Care Act has taken effect, and more states have expanded Medicaid coverage, so you must check with your accountant to see if your company qualifies for any of these new tax breaks. Suppose your company offers health insurance coverage to your employees, and they pay a portion of the cost in premiums. In that case, your business can qualify for a tax credit worth up to 50 % of its contributions toward employee premiums.
See If You Can Save by Switching Providers
If your business is growing and you have new hires, most likely, you will need to update the health insurance plan for your business. When the time comes to make a change, you must know how to evaluate which plans are best for your company.
One of the significant considerations in evaluating plans is cost. If it turns out that your current provider does not offer an affordable option and you are interested in looking at other carriers, call each one of them to determine which ones are willing to work with groups of your size. You should also ask what the network of doctors looks like for each plan, and this will give you some idea of whether or not there will be any changes in terms of doctor’s office visits or prescription medications.
You should also find out if there are any additional costs associated with switching from one provider to another. Some companies charge more for switching providers because they tend to pass on more expenses than others. To keep costs down, try and compare prices for similar plans across
Consider Offering a High-Deductible Health Plan (HDHP)
High deductible health plans (HDHPs) have lower premiums but higher deductibles — the amount of money you pay for medical expenses before your insurance kicks in. The IRS defines an HHDHP as a plan with at least a $1,400 deductible for single coverage or $2,800 deductible for family coverage (or greater). HDHPs also have limits on out-of-pocket expenses. If you don’t expect to need much medical care in the coming year, these plans can be attractive. They’re beneficial if you want to pair them with a Health Savings Account (HSA), which offers tax advantages and may allow you to save money while paying less in premiums each month.
Takeaway
In the end, it’s necessary to remember that your business’s health insurance options are broad, and you may need to take some time (maybe even outside of tax season) to review them. If you’re satisfied with your current plan, make sure that it’s renewed on time, or if not, make a plan to switch to another.
Each year will bring innovation and improvement in the insurance world, so make sure you keep up with your business’s needs and the changing healthcare market. Are you a business owner in Longwood, Florida, looking for new health insurance? Contact Vision HR for all of your business healthcare needs and questions; our experts are eager to help your business thrive.
