If your current small business medical insurance is an ordinary group plan, you’re probably facing a trend of ever-increasing premiums. These costs not only hurt the profitability of your business, but they damage the prosperity of your employees. Their paychecks are getting smaller if they’re contributing to the insurance costs, and they’re running a higher risk of downsizing or losing other benefits if they’re not. Affordable small business employee health insurance rates are an essential part of any business strategy; to find the best rates for your crew, you’ve got to investigate all of your options.
Researching the range of insurance opportunities should begin with weighing the costs and benefits of HMOs, PPOs, POSs and health savings accounts. Each of these come with different costs levels, but all can be affordable if used strategically.
HMOs, PPOs and POSs are all different types of managed health care systems. These plans favor preventative care instead of comprehensive care, but are much more affordable than indemnity health coverage. HMOs are usually the least expensive, but are the most restrictive about coverage and health care choices. PPOs offer much more freedom, but are among the most expensive managed health care plans. POSs combine attributes of both types, and are usually priced somewhere in the middle.
Health savings accounts can be an avenue toward lower small business employee health insurance rates, because they allow for extremely high-deductible plans. With a health savings account, employees can deposit pre-tax dollars into an account that bears non-taxable interest. Employer contributions to these accounts are likewise tax deductible. Employees can use the accumulated savings for health costs however and wherever they choose, even to pay their premiums where applicable. The low-rate, high-deductible coverage policy you can use with these accounts will only apply for major medical needs.
Investigate these options thoroughly and compare available rates, and you’ll be well on your way to insurance savings.
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