Whether you are a sole proprietor or you employ many people throughout your business, you may feel that offering health insurance is an important perk that you should be able to give people in the event that they become sick. After all, if they are working hard for you, you want them to get back to full strength quickly so that they can come back to work—if that means helping them through their illness by making health insurance part of their employment package, then it can actually be a great idea.
Not only that, but when you offer such incentives (which, of course, won’t be used very often), you will create loyalty within your workforce and you will attract the best candidates. So, what should you look for when picking a health plan? Here are some ideas.
The Premium
The premium is the final cost of the health insurance plan, which will need to be paid either monthly or in full at the start of the policy. Sometimes there will be a discount for paying in full, so this can be a good option, but it will all depend on your company’s cashflow as to what is going to be best. If there are many employees, for example, spreading the cost and ensuring it is added to the budget is a good idea.
Although how much you pay is going to be important, it shouldn’t be the final reason for choosing one provider over another. Don’t automatically choose the cheapest option if it isn’t going to cover you for what you want it to. Read the fine print carefully, and choose the best policy you can afford that will give you the coverage you need.
A Reputable Provider
As well as finding a great policy for your staff and for yourself, you should also make sure that the provider you are thinking of using is a reputable one. Read online reviews to see what other people think, and research the company as well as you can before making a final decision.
You will definitely want a provider that takes their responsibilities seriously. Do they use financial recovery services, for example, to keep running smoothly? Do they have an easy-to-use website that makes making a claim or renewing or changing a policy a simple matter? Do they pay out promptly when required? These may seem like small matters when you are first deciding who to use, but they can make a big difference when you come to using the insurance, and any delays can be problematic.
The Deductible
The deductible is the amount of money a policyholder will need to pay upfront, before the insurance services start to pay for additional treatment. If you have a deductible of $2,000, for example, and the final hospital bill was $5,000, the insurance would cover the remaining $3,000 after the initial cost had been paid.
The more you agree to paying as your deductible, the less the policy is going to cost you overall. However, you do need to check that you would be able to pay this money should you need to—or that your employee can afford it if they are the one who is going to be responsible for paying any additional money. Only when you know this can you go ahead and sign up for a policy.
