Health benefits are a great recruiting tool for small businesses. As an added bonus, they keep your workforce healthy and happy. But adhering to federal regulation and finding the right benefits for your employees can be a daunting task, and there may be serious financial implications if health benefits are administered incorrectly. Below are five tips that describe how to properly secure health benefits for your business:
- Consider All Options for Health Insurance
New, and oftentimes less expensive, health insurance options became available after the passage of the Affordable Care Act. Today the Small Business Health Options Program marketplace offers a way for your employees to secure health insurance through an exchange for companies that have fewer than 50 employees. Individual health insurance combined with reimbursement from you, the employer, can also be a less expensive option than group health insurance. Meet with your broker to figure out what makes the most sense for your company.
- Shop for Benefits During Renewal Season
Today, health insurance is renewed on an annual basis. Meet with your health insurance broker each year before open enrollment to discuss your options. Strategize around where your business is today and how you want to grow over the next year. Health insurance rate changes may significantly impact your bottom line, so considering many options will have distinct financial implications for your company. By shopping around and negotiating premium rates, you may lower your health plan costs.
- Maintain Control of Your Annual Costs
Try as best as you can to create a health insurance budget for your company. Because price increases do not happen at a predictable rate each year, it may be impossible to stick to the budget entirely. However, defined contributions like a premium reimbursement plan or individual insurance can make your cash outlay for health insurance more regular. Using historical price increases, you may also be able to create short-term and long-term spending projections for your health spending.
- Allocate Time to Administering Health Benefits
Utilizing healthcare brokers, HR benefits software solutions and/or defined premium reimbursement programs may help limit the time you spend on allocating health benefits. If these activities aren’t controlled, they may begin to take up a disproportionate amount of your time. Health benefits are important and they can be handled without jeopardizing the rest of your daily business activities.
- Focus on Adhering to Compliance Rules
There are dozens of federal rules that must be followed in order to administer benefits correctly. If you do not comply, you may be subject to penalties. A broker can help guide you through this process and HR benefits software also includes reminders.
With these tips, you can secure great health benefits for your employees while adhering to federal regulations. Finding the right benefits isn’t always easy, but it’s definitely worthwhile. With the right benefits, customers will see that you care for your employees and more job seekers will want to work for you!
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