Open enrollment season is upon us once again. This is the time of year for most small business owners to ponder their renewals for next year. If your small business health plan is too expensive or you feel you are not getting what you should out of it, there are a few points to consider before you check the â€śRenewâ€ť box on your form.
For most, the balance between affordable and good coverage causes a lot of headaches and rightfully so. If youâ€™re putting in things like â€ścheap health insuranceâ€ť or â€ślow cost health plansâ€ť into Google, you might have noticed that itâ€™s not easy to find what you are looking for; a plan that actually offers the coverage your employees need for the price you want. As with most insurance plans, if what you want covered is small then you are likely to pay a lot of money to cover it.
Why Your Small Business Health Plan Costs A Lot
It would stand to reason that you should pay the same amount of money for a small business health plan as you would a large one, right? After all, health insurance companies can cover up to hundreds of thousands of members on any given day. Shouldnâ€™t we all just pay the same rate and spread it evenly across every member? That is kind of how the idea was supposed to work with a recently proposed single payer system but as people are finding out, it doesnâ€™t exactly work that way.
Premiums are priced based on volume. When your needs are small compared to a Fortune 500 company, you are unfortunately not going to see much of a deal when it comes to your small business health plan. That is why your rate versus theirs is so much of a difference. Unfortunately, that is not what your employees want to hear.
The mistake in going with a low cost small business plan is they usually do not cover very much and if they do, it is hard for your employees to find providers that accept the health insurance they have. In going with these small business health plans, employees find themselves reaching into their own pockets to cover what their low cost plan doesnâ€™t. Higher premiums now or paying out of the pockets of unhappy employees. That doesnâ€™t sound like much of a trade off.
The bottom line is, if you want a small business health plan that covers the kinds of things your employees want coverage for, such as:
- Maternity coverage
- Psychiatric care
- Small/No deductible
- Reasonable co-payments
You are going to have to figure out how to pay for it. Or do you?
PEOs Offer Small Businesses Great Coverage They Can Afford
If you are wondering what kind of alternate universe you have to live in in order to afford a small business health plan, the good news is you donâ€™t need one at all. PEOs are the best solution for a small business who needs good healthcare coverage without having to go out of business trying to pay for it.
The top 100 PEOs cover thousands of small businesses so they are able to offer rates your company can afford with the coverage you always hoped you could offer to your employees. No, you are not dreaming. Just a few minutes on the phone with a PEO broker like PEO Spectrum can help you realize what the possibilities are for you and your company.The best part about the consultation is itâ€™s free. If you are wondering if you should renew your small business health plan right now, make the phone call and find out if you should.