Simply because the alternate options are not very attractive
Many small business owners in Texas go back and forth when trying to decide whether it would be truly beneficial. In this article, we’ll take a look at a few reasons why a group health insurance plan for a small business would be a good idea.
It would be best to begin with what access to health insurance in Texas an employee would have if you didn’t offer group medical insurance. The first option would be an ACA compliant policy either through the Marketplace or off the Exchange. These plans are generally a good idea for those with pre-existing conditions that require ongoing treatment. An individual health insurance plan, by law, will offer free preventive care, maternity coverage, mental health and substance abuse and coverage for any and all pre-existing medical issues. Sounds great, right? Yes, but unless the employee receives a federal subsidy, the cost of these plans has continued to grow year after year with no end in sight. A second alternative would be a temporary health insurance policy, but those can only be purchased for 3 months at a time. If you develop a major medical issue while on a short term medical plan, the insurance carrier likely will not renew it for another term. If you are outside of open enrollment for an ACA policy, you’re out of luck on insurance until January 1st of the following year.
A small business health plan can give your employees many benefits; some tangible and some not. It’s been proven that employers who offer group health insurance through their small business retain those employees for far longer than one that does not. Basically, you’re building goodwill with those that work for you and that can translate into more productivity and revenue for the business.
A second benefit to the employees is a reduced cost for them to purchase health insurance. As you may already know, if you offer a group health insurance plan in Texas, the employer must pay at least 50% of the cost and the employee will pay the balance. You can offer to pay more if you like, but most don’t. This can result in many of your employees becoming covered who otherwise would not have chosen to buy a health plan for themselves simply because it was cost prohibitive. With any small group health insurance policy, coverage for the other family members of the employee would be offered and as the employer, you could offer to pay for a portion of their premium as well, but again, most employers do not.
Any plan that you would offer will, of course, be compliant with the Affordable Care Act meaning that pre-existing conditions would be covered along with mental health, substance abuse and preventive care. All these factors would lead to a healthier and happier workforce, ultimately leading to more success for your small business.
So why not build some goodwill in your company and do the right thing for those that work for you; offer them a group health insurance through your small business and watch the smiles! If you are interested in learning more about this or would like to begin the process of obtaining quotes, either call us Toll Free at 866.270.6209 or Request a Small Group Insurance Quote here.