If you are a small business owner, one of your concerns may be your skyrocketing health insurance benefit costs. Between the lack of affordability and the time consuming administration, the whole process can become overwhelming. Well, that is if you are still using a group health plan.

So here’s the rub: If your group broker hasn’t shown you all of your options on how to provide benefits, they may be holding out on you. In fact, there’s a little-known solution out there that could save you a ton of money, improve access to coverage, and increase employee happiness.

A New Path For Business Health Insurance

If your broker hasn’t told you yet, there is a little-known solution for your small business’s health insurance: individual health plans for each employee. Now before you wrestle with the choice of transitioning from your small group plan to individual health plans, consider all of the potential advantages:

Potential Advantages

  1. While a group plan is administered by you, individual health insurance planning can be arranged each year by a licensed health insurance agent.
  2. Individual plans can save you thousands and could end up being free for your employees.
  3. Instead of the unpredictable, year over year, increases in your group health plan, you can choose to provide a consistent, predictable, and steady increase to employee wages to help cover their premiums.

While a group plan is administered by you (and perhaps an HR admin if you are so lucky), individual health insurance planning can be arranged each year by a licensed health insurance agent.

To get things started, you would meet with a licensed agent who is knowledgeable in small business health insurance. The agent would help you evaluate whether a switch to the individual market would suit your small business’s benefit needs and save you money. And let’s be honest. Your main concern is your employees. If an agent can find affordable solutions for your lowest paid employee to your right hand man, you could boost your title from ‘beloved business owner’ to ‘heroic owner who saved their employees and their business money’. It’s a long title, but a worthy one.

After the evaluation is complete and you’ve decided to move forward, the health insurance agent can meet with your employees individually. The employees can choose a plan from the individual insurance options offered in their area that suits their unique needs.

Once your employees have chosen their plans, they can rely on their licensed agent to answer their insurance related questions going forward. Aren’t you glad you’re no longer responsible for handling benefits?

Individual Plans Can Save You Thousands and Could Be Free For Employees

The average monthly premium for an individual with a group plan is about $450. In contrast, the average cost of an individual plan with a subsidy would reduce the monthly premium from $346 to $82 per month. Unfortunately, if you offer your employees group plans, they cannot legally obtain a subsidy. And even if you leave the subsidies out of the equation, the average individual premium is about $100 less monthly than the average group premium.

So, individual plans are less expensive on average than group plans. Your employees can apply subsidy cost-reductions. And the individual plans cost your business zero dollars per month. A switch can save everyone thousands each year.

If you’re like many small business owners, you may still worry about the cost of health insurance premiums becoming the sole responsibility of your employees. But even this concern has a solution in the individual market. Instead of the unpredictable, year over year, increases in your group health plan, you can choose to provide a consistent, predictable, and steady increase to employee wages. With the use of individual plans, subsidies, and a dedicated wage increase, your employees may end up with free health insurance!

Small Business Health Insurance Doesn’t Have To Be Hard

So, has your broker been straightforward with you lately? Have they told you that by considering the individual market, your small business’s health insurance may not have to be overwhelming or unaffordable? A licensed agent could take over the time consuming administration of employee benefits. They could even help employees select and understand their health insurance plans! Switching to the individual market could benefit your employees who qualify for health insurance subsidies even further by lowering their out-of–pocket expenses or premium costs.

Now that you know the little known solution, take the next step and see how much you can save. Call (800) 976-5818 to schedule your free evaluation with a licensed agent today.

 

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References

http://kff.org/other/state-indicator/single-coverage/ | http://aspe.hhs.gov/sites/default/files/pdf/76896/2014MktPlacePremBrf.pdf

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