Choosing the right health insurance can be challenging, especially for small business owners who want to provide employee coverage. Understanding how small business health insurance works and what options are available can help you make the right choices to keep your workforce healthy. 

Here’s a guide to help you explore the essentials of health insurance for small businesses, including factors to consider when choosing a plan.

What Is Small Business Health Insurance?

Small business health insurance is a type of coverage that employers provide to their employees and their families. It usually comes in the form of group health insurance plans, which offer medical care benefits at a lower cost than individual plans. The premiums are shared between the employer and employees, making it an affordable option for both parties.

Private health insurance plans are the most common choice for small businesses. Employers can purchase these plans from health insurance companies like United National Healthcare or through the Health Insurance Marketplace. There are various private health insurance options, including Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and high-deductible health plans.

How To Get Small Business Health Insurance

Small businesses can purchase group health insurance plans from private insurance companies or brokers. Typically, this involves contacting an agent to discuss available plans and choosing the one that best suits your company’s budget and healthcare needs.  

You may also explore options like the Small Business Health Options Program (SHOP). Employers who qualify can access affordable private health insurance plans through SHOP, which was established under the Affordable Care Act (ACA) to help businesses with fewer than 50 full-time employees find suitable health coverage.

Can I Buy Private Health Insurance at Any Time?

If you’re concerned about whether you can buy private health insurance at any time, the answer is that it depends on your situation. You can buy a business health policy at any time, but there are specific enrollment periods to keep in mind. 

Typically, people purchase insurance during the annual Open Enrollment Period, which occurs toward the end of the year. However, if you experience a qualifying life event, such as starting a business or losing previous employer coverage, you may qualify for a Special Enrollment Period. This gives you a 60-day window to buy insurance outside the usual time frame. 

Types of Health Insurance Plans for Small Businesses

When considering health insurance for small businesses, it’s important to understand the different plan options available. Here’s a breakdown:

• Health Maintenance Organization (HMO). Offers lower out-of-pocket costs and requires employees to choose a primary care physician. Medical services are generally provided within a specific network.

• Preferred Provider Organization (PPO). This type of plan is more flexible. It allows employees to see doctors outside the network at an increased cost. PPOs usually have higher health insurance premiums than HMOs.

• High-Deductible Health Plans (HDHPs). An HDHP has a reduced monthly premium, but increased out-of-pocket costs, making them suitable for employees who don’t anticipate frequent medical care. HDHPs are often used alongside Health Savings Accounts (HSAs) for additional tax benefits.

• Short-Term Plans. These plans provide temporary coverage, about 1 to 2 months. They are ideal if you are transitioning to a new business and aren’t sure of your long-term needs.

Understanding Health Insurance Costs

Several factors influence the health insurance costs for small businesses. Your expenses will depend on the type of plan you choose, the number of employees, and your coverage level:

• Premium costs. This is the amount paid monthly for health insurance coverage. Employers usually share the premium cost with employees.

• Out-of-pocket costs. These are expenses that employees have to pay, such as deductibles, copayments, and coinsurance. Different plans have varying out-of-pocket costs depending on the coverage.

• Cost sharing. Many group plans involve cost sharing, where the employer and employee contribute to paying for medical services. This approach helps make healthcare more affordable for everyone.

Benefits of Private Health Insurance for Small Businesses 

Private health insurance offers small business owners flexibility and tailored coverage options that government plans may not provide. It allows you to customize benefits for yourself and your employees, meeting the needs of your business. Benefits of private health insurance for small businesses include:

• Custom plans. Private insurance allows you to design coverage that fits your industry, whether running a private practice, a coffee shop, or a plumbing business. You can include essential services like preventive care, dental, and vision that meet your team’s needs.

• Tax credits. Small businesses that offer private health insurance may qualify for federal tax credits through programs like the Small Business Health Care Tax Credit. These incentives help reduce the cost of premiums, making it easier to offer comprehensive benefits.

• Employee satisfaction. Offering an affordable private health insurance plan can improve employee satisfaction. Workers feel more secure knowing they can access necessary healthcare services, including routine medical care and prescription drugs.

• Provider flexibility. Private health insurance often offers more extensive provider networks, giving employees a broader choice of doctors, specialists, and healthcare facilities. This can be especially important for business owners in industries like trucking that have specific healthcare needs.

Choosing the Right Plan for Your Small Business

Finding the right plan involves comparing different options and understanding how each plan meets your business’s needs. Consider these factors:

• Coverage needs. Think about the medical needs of your employees and their families. Look for plans that cover essential services like preventive care, specialist visits, and prescription drugs like insulin lisinopril.

• Compare plans. Use resources like this guide to buying private health insurance to compare different plans. For instance, assess private plans versus government plans to see how each meets your needs and how customized coverage options may be more suited to your business’s specific industry.

• Budget. Determine how much your business can afford to spend on premiums and explore options that balance affordability with quality coverage. Consider any tax credits your business may qualify for to inform your decision. 

Get the Right Coverage for Your Small Business

United National Healthcare offers a variety of private insurance plans tailored for small businesses. Whether you’re looking for individual coverage as an independent owner or a policy for a full team of employees, you can find a United National Healthcare private insurance plan that fits your needs.

Contact an agent today to discuss your needs and get a quote. We will help you choose the best plan for you and your team.