Three Common Small Business Health Care Misconceptions
Dan Levenson April 25, 2019
In a recent Forbes post, they looked at ideas surrounding “Three Common Small Business Health Care Misconceptions” when it comes to providing insurance coverage for employees of SMB’s (small-to-medium sized businesses). They cited this trio of concerns and successfully argued their accuracy with:
- Offering benefits doesn’t make any financial sense
- Team members who have too many health care needs
- Benefits options are too complicated
In this post, we’ll peer further into these misconceptions that some SMB’s make when considering health insurance for their staff. As part of this process, management may want to weigh these myths against reality when making this important choice.
Breaking The Law Versus Breaking The Bank
For some members of SMB’s the decision to not provide health care coverage could come from the knowledge they’re not breaking any laws by denying this type of insurance to their employees. When debunking this myth, it’s important to note under the ACA (Affordable Care Act commonly referred to as ObamaCare), those businesses with less than fifty employees aren’t required by law to supply medical coverage for their staff.
But according to a recent AHIP (American Health Insurance Plans) survey, the value of employer-provided insurance can outweigh the cost when it comes to employee retention rates, their overall job satisfaction and the decision to accept an offer of employment. In a competitive marketplace when hiring and keeping talent is often crucial to success, the money saved on these shortcomings are being recouped by making a prior expenditure of purchasing health insurance.
A Multitude Of Medical Issues Leads To Higher Costs
Pre-existing health conditions seem to be problematic for many clients when it comes to affordable insurance coverage, but this isn’t always the case. For some small group health plans, prices may be dependent upon age, location and the carrier. The current health of a particular employee may or may not be a determining factor when it comes to coverage.
While certain benefit platforms can be pricey, employers don’t necessarily have to subsidize the entire amount. Depending on the budget and plans available, a business owner can pre-determine the amount they’re willing to contribute. There are plenty of options available providing a wide range of benefits to accommodate a variety of different budgets.
Benefits Too Baffling To Comprehend
When it comes to a basic knowledge of benefits available to those who are covered, according to another recent Forbes report on this concept, only 4% of insured could correctly understand or identify certain terms and conditions like:
- Their deductible amount(s) for various services available including prescription coverage
- Out-of-pocket expenses associated with different procedures
- What exactly is involved with coinsurance and varying types of coverage
Being unable to understand everything involved with a complicated policy shouldn’t stand in the way of getting affordable insurance options for employees. The internet is an excellent place to demystify different terms and find ways to perform searches inside of lengthy documents online.
BONUS: Missed Open Enrollment Period
Businesses have to ability to make an open enrollment period at any time they deem appropriate. While traditionally this sign-up session is reserved for year-end or beginning, SMB’s have the ability to decide when employees are able to get coverage whether it’s once a month, quarterly, semi-annual or only once a year.
When you’re looking at affordable health coverage options for your business, it’s all in our name at Insure Your Company (dot com). Contact one of our agents today with any questions, concerns or possible misconceptions you may be having about providing quality and affordable health coverage for your valued employees. We’re always available to guide you through this complicated process ….. after all … that’s OUR job!