Small business health insurance questions answered

Selecting the best insurance policy for your small business means making an informed decision based on priorities for your business and employees. While many of the choices you will face may be similar to the self-employed, small business owners often have specific opportunities other larger businesses may not have. For example, the money small business owners spend on employee health insurance can be tax-deductible for qualifying candidates

Consider the following questions before making a decision so you and your employees can receive the best possible tailored coverage:

  1. Who will be covered under this plan?
  • Take an informal poll to see who might be interested if you begin to offer affordable group plans.
  • Understanding what your employees find to be most valuable is great insight before deciding on a plan. This includes catastrophic coverage, low copayments, prescription drugs, maternity care, etc.
  • In the state of Michigan, employers may be required to pay a certain percentage of the monthly premium, depending on the health carrier.
  • It’s important to find a balance of deductible and monthly premium rates so it works for as many employees as possible.
  1. What benefits are most important to you and your employees?
  1. How much cost-sharing can you afford?
  1. How much are employees willing to pay upfront?

Small business owners with at least 50 employees will be required to offer minimum essential health coverage to full-time employees and their dependents starting in 2013. If small businesses have 100 or fewer employees, employers are able to purchase insurance from state-run exchanges.

Have additional questions about insurance policies specific to your small business? Ask any healthcare question on Health Insurance Central to better understand your options.

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  1. Very well written post. I have a question I was hoping you might be able to help with. Why is it so expensive to start a small business? My dad is about to invest his retirement into a business idea. That’s not a good idea right? I really appreciate any advice you can give. :]

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