Health insurance plans have changed dramatically in the last few years and costs have risen substantially. Today, many businesses are looking for the best combination of coverage and cost when it comes to group health insurance. However, the amount of coverage and the cost per employee shouldn’t be the only factors you should be concerned about.
There are many factors to consider when determining which group health insurance plan is best for you and your company. Prior to consulting with a benefits broker like Employers Select Insurance Services, Inc., Inc., ask yourself these four important questions so that you understand what kind of plans will benefit both your employees and your business:
How much can I reasonably afford to contribute towards monthly premiums?
An important consideration when evaluating an employer sponsored health insurance program is what percentage should the employer pay and how much should the individual employees contribute. Some insurance companies require the employer to pay for at least 50% of the employee’s premium.
The actual amount employers contribute varies widely. A 2017 employer health benefits survey by the Henry J Kaiser Family Foundation showed that on average employers contributed 61% of the premium for family coverage. Large firms contributed an average of 72% of the family premium while small employers did so at 61%. 36% of small firms have plans where their employees contribute more than 50%.
Will my employees prefer low premium, high-deductible plans, or vice versa?
Low premium rate plans are often a great option for many small businesses. This is especially true for businesses that have a young and very healthy workforce that doesn’t see the doctor regularly or take a lot of prescription medication. The low premium rates provide employees with coverage, but also allow employees to maximize their take home.
However, if you have a lot of employees with children or ones that are older and require more visits to the doctor and more medication, a high premium, low deductible plan may be better.
Can I fit dental and/or vision coverage into the plan?
A comprehensive group health insurance plan can set your business apart from the competition, helping you to attract excellent employees and retain star performers. When evaluating plans it’s important to check if it has add-ons for dental and vision. According to Business Insurance Magazine about 50% of employers offer dental coverage and about 30% offer vision plans. Dental insurance and vision insurance add-ons can significantly improve the value of the coverage and employee satisfaction.
Do my employees have a preferred doctor/healthcare facility?
Ask your employees which doctors and healthcare facilities they visit. Make a list of those names and check if the insurance you are thinking of getting includes them in their in-network list doctors and facilities.
After taking these question into consideration, it’s time to look for the right health insurance broker to help you find the perfect coverage. Employers Select Insurance Services, Inc., Inc. is ready to help with a free consultation. They serve businesses, small and midsize alike from 25 to 500 employees, in Northern California including the Sacramento and Roseville areas.
Sources:
5 Tips for Selecting the Best Health Insurance Plan, Entreprenuer.com
How To Assess A Group Health Insurance Plan, Investopedia.com
2017 Employer Health Benefits Survey, The Henry J. Kaiser Family Foundation
Dental, Vision Plans Shifting to What Employees Want, Business Insurance Magazine
