Is Employee Health Insurance Worth It?
Employee health insurance is a viable option if you have more than 49 full-time employees. The question you face is whether offering an employer-sponsored health plan is a good fit for your business. If you're not sure, there are eight questions you can answer that can point you in the right direction.
1. Are You Working With a Broker?
Setting up health insurance coverage is a major investment of time and resources. You need a broker who understands your company's unique needs. The broker must also consider your budget. When you work with someone who has your best interest at hand, you're likely to get an affordable policy that's a perfect fit for your workers.
2. What Is Your Budget?
There are several variables impacting the cost of health care insurance. A few factors include employee contributions and program maintenance. Determine what you can afford based on your total annual budget.
3. How Many Workers Will You Cover?
Every coverage plan requires that you pay a deductible. The number of employees being covered affects the deductible amount. These costs differ significantly between large firms and small businesses. On average, the former plays a little over $1,400 while smaller companies pay approximately $2,200.
4. How Much Are the Contributions?
Employer and employee contributions are major cost factors in healthcare policies. For instance, employers paid nearly $6,000 and $15,000 for single-payer and family plans respectively in 2019. Likewise, employees paid around $1,200 and $6,000 for the same coverages. This gives you an idea of how much of your budget you can set aside for coverage.
5. What Do You Want the Insurance to Include?
You want to offer your team a plan tailored to their needs while staying within your budget. There are many benefits options that workers value, such as:
6. What Resources Will You Set Aside for the Health Insurance?
Sustaining an employee benefits program requires dedicated resources. Ideally, you need personnel to oversee and administer the program. Additionally, there's the need for HR technology to help things run more efficiently. Of course, these are added expenses. However, it's a worthwhile financial investment that helps ensure your company and team benefit from the health insurance policy.
7. What Role Do Benefits Play in Your Hiring Process
Competition is stiff when it comes to recruiting talented job candidates. This is one reason why many companies provide health benefits packages. It's a high-value benefit many workers have come to expect from an employer. If your competitors are offering coverage, it may be a wise move to do the same in order to recruit top-tier job seekers.
8. What Are Your Goals and Needs?
Every health plan has its pros and cons. The best program is one that aligns with your goals. It also addresses the specific needs of your employees. Once you're clear on what it is you want to achieve and the best way to serve your workers, evaluating policies becomes a lot easier.
Choose the Right Employee Benefits Policy
Answering these eight questions helps you determine if an employee health plan suits your business. If you need more information, contact us at (707) 823-3689. We work with reputable insurance providers who offer a variety of comprehensive policies.