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The Reader’s Question

How do I reduce costs for the health insurance of small businesses?

Bob Springer

Thank you for this question.

Health insurance is one of the major costs of having a business. This applies most especially for such small companies. With the increase prices of the premiums, plenty of small business owners are requesting their employees to take care of paying more of the financial burden thus benefits of the companies are cut tremendously.

An advocacy group for the reform of health care in New York mentioned that the costs of a health insurance for small businesses average more than that of larger businesses. Such costs are really very high for small businesses. Even if such insurance really costs so much, benefits of the company such as this kind will likely appeal to the best employees and will help in retaining the present workers. With satisfied and healthy employees, it will greatly help your business to grow. Here are the tips to lessen your costs of small business health insurance.

* Lessen coverage. You may like to ask your employees what part of the insurance coverage they like to be excluded out. Explain to them the reason why there is the need to do such reduction.
* Maintain the health of the employees. Introduce wellness programs to your employees. This will be greatly appreciated by your employees, and as the saying goes “Prevention Makes Common Cents”. That is according to the U.S. Department of Health and Human Services report of 2003.
* Unite with another group. Take note that if the group is larger, the premium will be much, much lower. If your business consists of less than ten employees, you may like to join other businesses or individuals so as to expand your group insurance plan.
* Take into account health savings accounts. These health savings accounts, which are tax-exempt, are becoming a popular choice among owners of small businesses. These accounts will be able to lessen your costs of small business health insurance while at the same time, giving tax breaks to your employees.
* Look around. Try to look for different providers of small business health insurance so as to reduce costs. You may also get the services of insurance agents but they will charge fees. In the long run through these agents, you will be able to save time and they will check the plans of health insurances for you.

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