How Much Does Health Insurance Cost for Small Business Owners?
If you’re a small business owner, finding the right health insurance is crucial—not just for your peace of mind but also for your employees’ well-being. But how much does health insurance for small businesses cost?
The cost depends on the type of plan you choose, the size of your business, and your team’s specific needs. For example, a tech startup with a young, healthy workforce might benefit from a high-deductible plan paired with Health Savings Accounts (HSAs) to keep premiums low.
Whereas, a family-owned restaurant with a mix of full-time and part-time employees might prefer a group health insurance plan that offers comprehensive coverage, ensuring all staff members, including those with families, are well cared for.
Learn about potential small business health insurance options and what you can expect to pay for single-payer and family coverage.
Understanding Health Insurance Costs
The cost of health insurance coverage for small businesses depends on the plan you select, the number of employees, and the state where you operate your business. The type of plan you choose can have a big impact on both coverage and costs.
Group Health Insurance Plans: Designed for businesses, covering employees and their families, offering comprehensive coverage and cost-effectiveness. These plans are best for small businesses looking for balanced coverage for a group of employees.
Private Health Insurance: Private health insurance plans purchased from private companies offer a range of coverage options and premiums. They are ideal for individuals who require flexible coverage outside of a standard employer-sponsored plan.
Private Family Plans: Health insurance plans that cover all members of a family under a single policy, often more cost-effective than individual policies for each family member. These plans are suitable for families looking for comprehensive coverage that includes all members under one policy.
Health Savings Accounts (HSAs): Compatible with high-deductible health plans, HSAs allow for tax-free savings for medical expenses, a strategic option for controlling costs. They are a strategic option for businesses and individuals seeking to manage costs with high-deductible plans.
Preferred Provider Organizations (PPOs): PPO plans offer the freedom to choose doctors and specialists without referrals and provide a vast network of providers, but they come with higher employee premiums. PPO’s are best for those who prefer extensive provider options and do not mind higher costs.
Health Maintenance Organizations: Require members to use a network of doctors and hospitals and often require specialist referrals. They typically offer lower premiums and out-of-pocket costs, making them a good choice for small businesses seeking lower costs and willing to work within a network of providers.
Costs of a Small Business Health Insurance Plan
No matter what type of plan you choose, you need to budget for the fixed health insurance premiums costs and out-of-pocket costs. Here’s a breakdown of what to expect:
Premiums. These are the regular payments made to maintain insurance coverage. They represent a fixed monthly cost, allowing you to plan your budget. Lower premiums often mean higher out-of-pocket costs in other areas.
Deductibles. This is the amount you need to pay before the insurance starts covering expenses. A higher deductible can reduce monthly premiums, which works well if employees generally don’t require frequent medical care.
Copayments. These are fixed fees for specific services, like doctor visits or prescription drugs. They provide predictability, making it easier for businesses to forecast healthcare expenses.
Coinsurance. After meeting the deductible, this is the percentage of costs you share with the insurer. Lower coinsurance rates can help control costs, especially if you anticipate a high number of healthcare services.
Tax Credits and Incentives
As a small business owner, you can take advantage of tax credits and incentives that help reduce the cost of offering health insurance to your employees. The Affordable Care Act (ACA) designates tax credits specifically designed for businesses like yours, potentially making health insurance more affordable.
For instance, the self-employed health insurance deduction allows you to deduct the cost of health insurance premiums for yourself, your spouse, and your dependents, reducing your taxable income. You and your employees can deduct out-of-pocket costs for medical services, provided these expenses exceed 7.5% of your adjusted gross income and you itemize your deductions.
Work with a tax professional to see if your business qualifies. These credits can lead to major savings on affordable private health insurance plans, further easing the financial burden of offering coverage.
Can I Buy Private Health Insurance at Any Time?
You must typically purchase health insurance during the open enrollment period, from November 1st to December 15th, or after a qualifying life event like marriage or the birth of a child. This applies to most standard plans, including HMOs and PPOs.
If you’re just starting a new business, you might wonder, can I buy private health insurance at any time for myself and my employees? While you still need to purchase private insurance during the open enrollment period, you can opt for short-term coverage to bridge any gaps. This solution ensures you and your team have temporary protection outside standard enrollment times.
Making the Right Choice for Your Business
At United National Healthcare, we offer a range of plans to meet your needs. The following guide to buying private health insurance can help you decide which coverages are right for you:
Identify coverage needs. Determine what covered services your company requires, such as dental or vision care, and ensure the private plan offers these options.
Evaluate plan flexibility. Private health insurance often allows for more customization–pick a plan that lets you tailor coverage levels and include add-ons like wellness programs or mental health services.
Consider premium and out-of-pocket costs. Compare the costs of private plans, including monthly premiums, deductibles, and copayments, to find a balance that suits your budget while offering comprehensive coverage.
Check the provider network. Make sure the private plan offers a broad network of preferred doctors and specialists, giving your employees plenty of options for their healthcare needs.
Review customer service and support. Select a private insurer known for responsive customer service and easy claim processing, which can make managing your company’s healthcare needs smoother.
Get Affordable Private Health Insurance With United National Healthcare
Choosing the right health insurance for your small business matters, and United National Healthcare’s private insurance plans deliver the flexibility and comprehensive coverage you need. Customize options to fit your company’s specific needs, ensuring your employees receive the best care while keeping your budget in check.
With a broad provider network, competitive pricing, and exceptional customer support, United National Healthcare is a smart choice for small business owners. Protect your team and keep your business thriving with our reliable private health insurance plans. Request a quote today to get started.
