One of the big decisions that can weigh on the shoulders of small business owners is the one of whether to offer group health insurance or not.
For those owners trying to decide one way or another, check out the following FAQ’s for some answers:
- Does a small business have to offer health insurance to its employees?
No. Unless a small business has 50 or more employees, group health insurance is completely optional.
- Why should small businesses offer health insurance to their employees?
If a small business owner does decide to offer group health insurance, his or her employees may seek health assistance quicker if a health issue arises and less work and time may be missed. Though health insurance is an expense to the employer, the goal is to save money in the long run by providing good health care options to employee so they can stay healthier and miss less work. If a serious illness or health condition arises, they’ll have security in getting the proper care they need.
Also, some employees may have benefits as one of their own job requirements. A small business owner can miss out on an excellent employee if they do not offer group health insurance. Many employees feel that if their employer cannot provide health insurance, the loyalty of the company is lacking and they may choose to go elsewhere, where insurance is covered.
- Should employees have a say in deciding on group insurance?
That would really be up to the employer, but usually it is better if the employer just makes these choices.
Employees have enough to choose from within the given plan; it’s probably best for the owner to go ahead and choose the best health insurance company to fit the needs of the small business and then offer the plan to the employees.
- How does an employer/small business owner go about choosing the best company to provide coverage?
The best way to narrow down the different providers is to begin with research. Employers should research online, make some phone calls and have a list ready with questions they have and whatever requirements they have for their company and employees.
Yes, it’s tough for a business owner to make so many decisions every day.
Figuring out his or her employee’s health care is not an easy one.
But if it is a possibility to offer the option of group health insurance, it’s a great way for a small business owner to make employees feel well taken care of.
As a small business owner, how have you gone about covering your employees?
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About the Author: Heather Legg is a writer who covers topics on small business, social media and mindful living.