Improve the Health of Your Company with Right Healthcare Choices

With many small business owners struggling just to keep their businesses afloat, rising healthcare costs for their employees is just one more burden to deal with.

For those who are not aware, health care is the second greatest cost for a small business owner following payroll, hence it proves a major expense issue to deal with.

As small business employers look for ways to cut costs and save on expenses, finding the right healthcare package for their employees proves more important than ever. Employers have seen health care reform increase their expenses across the board, as insurers’ are increasing their premiums drastically due to the fact they do not know what the end result will be from President Obama’s healthcare reforms.

The Health of Your Company

While there may be some uncertainty as to how Obama’s healthcare reforms (assuming they are not slashed should he not have a second term) will impact small business owners, there are things employers can do to better financially position themselves when it comes to healthcare coverage for their employees.

Among the things to look at are:

• Reviewing your present plan – Take the time with your financial team to review the current plan in place for the company. Are there areas where money can be saved? Are there opportunities to improve the healthcare choices for your employees without increasing the bill substantially?
• Look to assume more risk – Given the current healthcare climate, more small businesses are looking to trend toward a self-funding model. With a self-funded model, the small business owner takes the initial pot of money per employee per year and places it into an account as opposed to providing it to the insurer. When the year is over, the account should contain some money. In essence, the individual increases their deductible up to the point they can afford, lessening the premium, and then asking the employer to cover it. In turn, the employer takes on a less expensive risk.
• Motivate your employees to be healthy – While it seems like a no-brainer, many companies do not take the time to encourage their employees to stay healthy in the first place. For those companies who have a wellness program in place, they are more apt to have healthier employees, therefore reducing the chances of their workers getting sick and injured in the first place. Among items in the wellness program to include would be options to workout at gyms, cancer screenings, flu shots and more.
• Look into health savings accounts – Along with being tax-exempt, these accounts end up paying for some medical costs, therefore decreasing one’s small business health insurance expenses. Contributions and withdrawals both prove tax-free, and individuals can note tax deductions with their 1040 forms. Employer contributions also prove tax-deductible for business owners, however they are not required. 
• Shop around for different quotes – Shopping around for different health insurance providers offers small employers the chance to save money and provide quality care for their workers. When shopping, plan to check out at least 5 to 10 different providers and talk to others if possible who use them for referrals.

While there is still much uncertainty when it comes to health insurance for employers and employees, small business owners who invest the time into reviewing coverage plans for their workers stand to gain the most.

In a trying economy such as we’re seeing in 2011, the healthy approach is to shop around.