Insurance Report

Individual and group health insurance plans both have their pros and cons.

Unfortunately for small business owners, it isn’t always easy finding the plan that works best for them and their business. Before picking a plan consider the following for you and your employees:

Individual Health Insurance

Pros:

• Provides customizable options to pick a plan that offers the benefits you need. You can also pick a plan that is compatible with a Health Savings Account (HSA).
• Individual plans are more portable than group plans and you can keep your plan if you ever choose to leave a current position.
• Your premiums won’t be higher due to the health and age of your coworkers.

Cons:

• In almost every state, you can be turned down coverage due to pre-existing conditions until 2014. There are plans that you may be eligible for otherwise like the Pre-Existing Condition Insurance Plan but there are certain criteria you must meet.
• The cost of individual health insurance varies greatly between states.
• Not all plans provide maternity coverage but it can be added on as a rider along with dental and vision benefits.

Group Health Insurance

Pros:

• Every employee is guaranteed to get health insurance regardless of pre-existing conditions.
• The employer will pick up a majority of the cost (typically 80 percent).
• Employers do not have to pay taxes for providing the plans and are a great benefit for employees.

Cons:

• The cost of a group plan can be determined by the age and health of the group. For some companies, the demographics of the workforce may increase the cost of health insurance for the entire group.
• Plans aren’t customizable. There will be individuals who will receive maternity coverage but never use it.
• If employees lose their job or want to move between jobs, then they will lose their coverage.
• Some employees may switch between part-time and full-time hours, which may qualify or disqualify them at times for employee benefits.

Tips to Choosing Small Business Coverage:

1. Consider the health of you and your employees. Will it be hard to get individual coverage? Will it be too expensive to afford group coverage?

2. Have you thought about alternatives to the normal individual or group option? Some employers have started contributing a certain amount for premiums and let their employees make the decision of how to get coverage. Depending on the business, employers may be able to join groups or associations that have a larger pool for the group plan.

3. Talk to a health insurance agent. An agent will be able to guide you through the decision-making process and will provide state-specific information about health plans. Each state has different laws regarding health plans.

4. Don’t be afraid to talk with other managers and employees about access to their options. Some employees may value health insurance options more than others or would want help finding coverage.

5. Find out if you are eligible for small business tax credits from health care reform. Many small businesses will be able to benefit from this provision.

Similar Posts:

• Pre Existing Condition Medical Insurance
• Virginia Health Insurance
• International Health Insurance for Employees
• Student Secure Medical Insurance
• Benefits of Getting Business Liability Insurance