Small business leaders are acutely aware of why employer-provided health insurance is such a desirable benefit for their current and prospective employees. The challenge is determining a cost-effective way to deliver it.
While companies with fewer than 50 employees aren’t required to offer health insurance, many feel a responsibility to keep their staff members happy, motivated and at ease with employer-provided coverage. As small business owners and HR professionals consider the drawbacks, they’re also discovering the many advantages of leveraging individual health insurance for business in a post-Affordable Care Act world.
Considering the many hats that most small business managers wear on a daily basis, spending an inordinate amount of time on a single task, such as health benefits management, isn’t a viable option. They need to be able to evaluate, administrate and move on as quickly as possible.
Companies that have their employees sign up for individual health insurance — “Policies for people that aren't connected to job-based coverage,” according to Healthcare.gov — are able to completely cut out one of the most labor-intensive aspects of small business HR: researching, selecting, and working with insurance vendors.
This model frees up time and money for small businesses to offer tax-compliant defined reimbursement health plans — a major draw for many talented professionals in the modern workforce.
Reducing staff time spent on benefits administration directly saves money. That’s a major budgetary advantage of modern individual health insurance. In addition, small businesses that implement defined reimbursements can count those reimbursements as a tax-deductible business expense.
Employer-provided health insurance is one of the most highly valued workplace benefits, but one sizable drawback is the uniformity of coverage within traditional group plans.
In a modern world filled with personalized, interactive experiences, individual health insurance puts the power of choice in the hands of employees. They can choose policies that specifically meet the needs of them and their families.
Individual health insurance for your business can be a valuable component of an innovative, modern health benefits plan. The advantages for your small business include time and cost savings, improved employee satisfaction and more.
What questions do you have about individual health insurance for business? Ask us in a comment below.