How to Obtain Small Business Health Insurance for Your Employees

If you're a small business owner, obtaining health insurance benefits for your employees will prove beneficial to both your workforce and your small business. Offering health insurance to your employees can increase job satisfaction, which in turn can spur production and profit. Here's how.

Difficulty: Moderately Easy

Instructions

Learn About the Benefits of Small Business Health Insurance

1. Recognize the savings you'll gain on personal health care expenses when you obtain a group health insurance plan for your employees and your small business. If you have at least two employees, but not more than 50, your small business health insurance can be affordable and cost-effective.

2. Be aware that group health insurance for a small business may offer certain tax advantages since the employer's contribution is usually 100 percent tax deductible, and employees benefit from reduced payroll taxes.

3. Consider getting group health insurance even if you're a nonprofit organization, as long as you have two or more full-time, taxable employees.

Find Out How Small Business Health Insurance Works

4. Anticipate that insurance premiums are calculated differently depending on your state and the health insurance company. However, certain common factors are taken into consideration, such as age, tobacco use and occupational hazard.

5. Expect small business health insurance plans to come in different sizes too. For instance, HMOs, PPOs and POSs all have different requirements in terms of selecting a primary care physician and obtaining medical services outside of the insurance network. All of these options will influence premium cost.

Get More Information About Small Business Health Insurance

6. Consult with your local chapter of the U.S. Small Business Administration (SBA). The SBA has regional district offices as well as Business Development Centers that can help you obtain health insurance for your small business (see Resources below).

7. Look to other resources that can help with your health insurance questions and considerations, such as your local chamber of commerce or the economic development agency of your state.

Tips & Warnings

• Advise your employees that enrollment in a health insurance plan often requires a period of 30 days or more before the insurance benefits go into effect.