Here are answers to some of the most common questions about small business group health insurance:
Q: How do I choose an agent for my group health insurance plan?
A: We recommend that you gather as much background as possible about the health insurance marketplace. Next, create a summary plan description, which is a list of what you and your employees want in a group health insurance plan. Start with a few basic features and consider what percentage of the premium the company and the employees will pay. You’ll give this to agents and brokers as the basis of their price quotes. And finally, look for an agent or broker who is the right match for your business.
Q: What's the difference between an agent and a broker?
A: An agent represents an insurance company, while a broker represents the insured or policyholder. An independent agent is unaffiliated with any particular insurer and represents a range of companies. Both agents and brokers can quote on your group health insurance plan.
Advice for small business owners
Q: I'm just starting out and have only a few employees. What type of group health insurance plan would be best for me to implement?
A: Temporarily, it might be advisable to offer a fairly basic, low-cost plan rather than a full health insurance plan such as an HMO or PPO. Once your business has expanded - and if your employees demand it - you can switch to a traditional full-coverage plan.
Q: What kinds of tax breaks are available when I provide group health insurance for my employees?
A: You may be able to fully deduct the premiums paid on your group health insurance plan. You may also reduce your payroll tax by offering health insurance coverage as part of a total compensation package. Health Savings Accounts (HSAs) offer another significant tax break for you and your employees. Talk to your agent about HSAs and HSA-eligible plans.
Take the first step to choosing the right health insurance company for you – get your free group health insurance quotes today!
