Choosing Health Insurance for Your Small Business
With the passage of the Affordable Care Act, small businesses now have, more than ever, some tough decisions to make when it comes to choosing small business health insurance providers for their workers. Should an employer provide health insurance at all? How much should they allocate for the costs? What is the best available, affordable coverage for their small business? Since health coverage is now mandatory for every American citizen, answering these questions, and more, is essential to every employer who wishes to make an informed choice.
ObamaCare did not change the types of plans available; it simply changed the baseline requirements for each plan. Preferred Provider Organization (PPO), Exclusive Provider Organization (EPO) and Health Maintenance Organization (HMO) are all still available for selection. Each plan offers its own advantages and disadvantages, however, so it is important to know what kind of product you need for your small business health insurance needs.
PPO and EPO plans tend to be the most expensive, but can be combined with a higher deductable and a health savings account plan to help offset the cost. They are also often considered to provide some of the best, most comprehensive coverage available. All plans on the federal Small Business Health Options Program (SHOP) marketplace are placed into categories that you may find helpful when choosing a group plan: Bronze, Silver, Gold and Platinum. Each category has a different set of rules regarding cost sharing between the employer and employee, and while all plans must offer some essential benefits and coverage, the plans can have some significant differences.
The most effective way to ensure that you are not paying too much for your small business health insurance coverage is to speak to a knowledgeable, experienced insurance provider. They can be the greatest resource in this time of changing laws, and are usually happy to provide their services to interested businesses. They will help to tailor a plan specific to your needs and budget, and in the end, that plan could save you a lot of time and money.
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