Small Business Health Insurance - Are You Making These Mistakes With Yours?

What is the right small business health insurance plan for your business?

Obviously the plan with the most coverage for the least amount of money from you and your employees.

When you sit with your agent (and you should insist on a face to face meeting as opposed to a telephone call), you will call the shots depending on how much you're willing to shoulder some of your employees medical expenses in return for lower premiums.

But don't rush through the meeting and don't just accept any plan from your agent. There's too much at risk. Both for you and for your employees.

Nothing can cripple your business and your employees' financial lives faster than enrolling in the wrong health insurance program.

Of all the employee benefits program that you offer (in order to increase your competitiveness and attract the best talent), your small business health insurance ranks the highest.

Most of your employees will choose it over life insurance , stock options and even over retirement savings plan (such as an IRA or 401k).

Your small business health insurance plan must begin with a reasonably good amount of medical expense insurance. Depending on the policy, this coverage may range from hospital expense only to as much as surgical and physicians' expenses.

If you've ever been to the emergency room of any hospital, you might remember seeing some ridiculous amount of money (usually in the tens of thousands of dollars) at the end of the 3 or 4 hours they kept you waiting.

You might also remember that the physicians' bill was separate from the hospital bill. Don't ask. That's just the way it is.

So it goes with the health coverage you choose, if it covers hospital expenses only, then all other expenses such as lab work, medicine, doctors (and there are often several to stop by for their 15-second appearance) are out of pocket.

Speaking of out of pocket, here's one thing you can't afford to overlook in your health plan. Don't forget to help your employees by selecting a good supplemental insurance plan for them.

It is something that they can only get through you (via payroll deductions) and it won't cost you a dime. It is simply an option you will provide (through a reputable company) to supplement the insurance coverage you provide.

With the escalating rise in premiums as well as the increasing cost of healthcare, before you reduce benefits or even eliminate health insurance small business from your vocabulary, you might want to first explore offering a supplemental insurance program.

It's cost-effective for you because this is something that your employees will choose to pay out of their own pockets if they so wish, and they will thank you for it.

There's one more thing we need to talk about. Health insurance for small business shouldn't stop with an employee benefits program. You also need business health insurance to protect your business in the event of a disability of a key employee, or even the owner.

A disabled partner or key employee often times continues to receive income even while disabled. Yet the remaining partner must somehow pick up the slack left by the disabled partner's absence.

A disability buy-out plan will serve the business well should it be determined that the partner will not be able to return to the business. It will facilitate the buy-out of the disabled partner's interest - either with one lump sum or through periodic income payments. For more info on how to lower the cost of your health plan through supplemental insurance, contact me.

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