Choosing Health Insurance For Your Small Business

With small businesses employing the majority of the workforce, the health benefits they offer is vitally important to millions of workers. When evaluating which health insurance plan is best for your employees, make sure you shop around. The large variety of plans and coverage options available can be difficult to navigate, but these options allow small businesses to tailor plans that best fit the needs of their employees.

When considering a health insurance plan for your small business, it’s important to note that insurance carriers calculate rates according to the following case characteristics:

Age of employees – Older employees are assumed to have more expensive and more frequent health-related claims, so generally speaking, an older workforce means steeper health plan costs.

Gender – Women typically incur more medical costs than men at younger ages, while males incur higher costs as they age. If your small business has a young, predominately female workforce, or one that is older and mostly male, expect to pay higher premiums.

Number of plan participants – As the amount of plan participants increases, the administrative cost for each individual decreases.

Industry – Certain factors, like unsafe working conditions, subject small businesses to higher costs. And even high employee turnover can result in a more expensive plan due to higher administrative costs for the insurer.

Geographic area – Health care costs vary by region due to differences in cost of living, medical practices and the amount of medical competition in the area.

Since the above factors affect health insurance rates, you can expect premiums, deductibles, coinsurance percentages and copayments to vary drastically from plan to plan. Shop around and do your research to ensure that you get the best plan at the best price for your small business.