Selecting the right health insurance for business owners can be a daunting task. Fortunately, information exists for you to select the best healthcare plan for your workplace. Keep in mind these key requirements and options to properly insure your business.
Affordable Care Act Requirements
All businesses with 50 or more employees are required to provide group health insurance. 95% of full-time-equivalent employees should be covered by insurance. Employers with fewer than 50 employees are not required to provide insurance to employees.
Types of Insurance for Employees
Four types of insurance plans exist for the needs of different businesses:
Point-of-service plans offer medium-level premiums in exchange for variable benefits based on whether a policyholder uses in-network or out-of-network providers.
Health maintenance organizations offer lower premiums in exchange for less flexibility, such as the need for referrals for out-of-network services.
Preferred provider organizations offer medical services at a reduced rate to policyholders. A PPO offers greater flexibility than an HMO, but at a higher price.
Exclusive provider organization only covers visits to in-plan doctors or specialists, save for emergencies.
Conducting an Employee Survey
One means to discover employee desires and needs is the creation of a survey designed to gauge reactions to different types of plans. Anonymity is important, as the sharing of health information can violate the Health Insurance Portability and Accountability Act.
It’s important that both your business and its employees weigh the options before you decide on a health care plan.