To lower the cost of an insurance plan, you will soon learn that changing the deductible affects the premium more than anything else. Other coverages in an insurance plan affect cost also.
There are optional coverages that can be included in group plans. Some small businesses include dental, vision, and alternative medicine options. Of course, more options mean higher premiums.
Also, there are two maximum limits in insurance plans that can also affect the premium price: the maximum limit for each claim and the maximum limit over a person’s lifetime. The higher the limits, the higher the premium will be for you.
For the small business owner looking for health insurance, these are the main points to consider:
- Most small businesses provide health insurance through a group plan.
- You should understand the various types of networks used in group health policies (HMOs, PPOs, POSs and new Health Savings Accounts).
- The amount of the deductible (which you choose when setting up the plan) greatly affects what you will pay for the premium.
- It might help to compare your final two possible plans by running some totals: compare the annual premium you would pay and the speculated amount your employees would pay out-of-pocket yearly with both final choices. See what the differences are money-wise and if both you and your employees can live with the amounts.
- Your decision about which type of group health insurance will probably come down to a compromise, considering your total costs for the policy, the services provided, and the probable ability of your employees to pay out-of-pocket expenses.
- Some states allow small businesses to form alliances which then purchase group insurance at a savings.
TIP: To make the quote process faster and easier, you’ll need to have the following information on hand:
- the zip code of your business
- the number of employees you want to enroll in the plan
- the date you’ll like coverage to begin
- The # of eligible Singles,H/W, Parent/Children, Family