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How should I decide whether my Small Business needs a Health Plan?
Home » Small Business » Small Business Health Plan » How should I decide whether my Small Business needs a Health Plan?Small business health plans both relieve headaches and create some new ones. Consider both the advantages and disadvantages of having a small business health plan and decide accordingly.
The most substantial advantage of a small business health plan is health insurance’s power in employee recruitment and retention. Job applicants usually recognize that a quality health plan could save them thousands of dollars, so health care is a very attractive benefit. In addition, however, health plans offer your small business tax advantages, as the IRS permits deductions of the amount you spend on employee health care premiums. Finally, small business health plans serve as a preventative measure for your business—employees stay healthy, and healthy employees are working employees.
The major disadvantage to small business health plans is, of course, the cost. Health coverage saves your employees thousands of dollars, but it also costs your company thousands. In addition, someone in your office will need to administer the health plan—filling out paperwork, discussing issues with the providers and employees, etc.—which means less time for other projects. Finally, in some case, you may have unhappy employees anyway. Whether they are not able to use their preferred physician or they feel their premiums are too high, many employees will find a reason to complain about anything, which might make you wonder why you offered health coverage in the first place.
Hopefully, your concern is for your employees’ health and well-being and not simply for your small business’s profit. Some companies do not provide health care but do offer group rates to their employees. Other companies ask employees to show proof of other insurance if they plan to turn down the health care offered. Each small business is different, so talk to your employees and review your options before you make a decision. With small business health plans, as with any business decision, you have to decide whether the cost and the work is worth the benefits of recruiting and retaining healthy, hard-working employees.
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