How to Choose the Best Health Insurance Provider for Your Small Business
If you’re in charge of picking out your own health insurance provider as the owner of a small business, you’re probably wondering how to choose the best one for your needs, budget, and employees. There are lots of things to consider when determining which provider is right for you, including the cost of the premiums, how much coverage you get, and whether or not you get to choose your own network. Here are some of the top health insurance providers in the industry and what they have to offer.
Different Types of Plans
The first thing you’ll want to do is determine which type of plan will be best for your business. In short, there are two main kinds of insurance: indemnity and managed care. Indemnity plans allow you to choose your own doctors, hospitals and other providers; most health insurance companies offer some kind of an indemnity plan. Managed-care plans—also called HMOs (health maintenance organizations) or PPOs (preferred provider organizations)—require that you use certain providers in order to get coverage. These plans often have lower premiums than indemnity plans but come with limitations on where you can seek treatment. You may also have to pay a deductible before any services are covered by your insurer. While managed-care plans are becoming more common, they aren’t right for every small business owner; if you don’t think you need these types of restrictions on your medical decisions, then an indemnity plan might be a better fit.
Compare Prices
Before you buy health insurance, shop around! Sometimes it’s easy to get locked into a provider because they always give you a great rate. But if you have options, why not? It doesn’t hurt to compare prices and see what else is out there. You might be surprised by what deals you can find (or surprised that your premiums are actually higher than anticipated). Shopping around helps ensure that when it comes time to choose a health insurance provider, it won’t be just about price but also value and benefits. After all, your health is too important not to take every precaution.
Access to Doctors
Make sure your doctor will accept any health insurance provider you choose. If you have a choice, find out if your current doctor participates in any of these plans. If not, and if you’re not married to your doctor, consider asking him or her if they would be willing to switch. The reality is that most doctors have an agreement with at least one provider, so they may be willing to change their contract. Be realistic about what’s reasonable—but asking never hurts. You might also want to check with some local clinics; many offer discounted rates based on income level. You could also use one of several online tools that match patients with doctors in their area. Many require only basic information (your zip code) before providing a list of physicians who are accepting new patients in your area. However, it’s important to note that all services like these rely on user-generated content, which means there is no guarantee about how accurate or up-to-date the information provided is.
Dental Coverage
Dental insurance is a great benefit to provide your employees because it covers some of their basic dental needs, like regular cleanings and checkups. What’s more, you may be able to take advantage of tax benefits from offering dental coverage in addition to medical coverage. According to a study by America’s Health Insurance Plans (AHIP), around 40 percent of businesses with three or more employees offer dental insurance as a supplementary benefit, and 35 percent offered vision coverage. For small business owners who are looking to keep costs down, AHIP recommends looking into limited-scope dental plans that cover preventive care but not major procedures like crowns and root canals. You can also offer a discount program through which employees pay reduced rates for routine procedures if they get them done at specific providers—for example, $50 off cleaning if performed at ABC Dental Care.
Preventative Care Coverage
Every business owner should carry a basic health insurance plan that covers preventative care (even if it doesn’t cover any actual medical procedures). Many people don’t think about it, but regular checkups can help save you money in a few different ways. Visiting your primary care physician can uncover expensive illnesses or conditions before they become life-threatening emergencies, and catching these issues early will get you one step closer to maintaining a healthy lifestyle and saving yourself thousands of dollars down the road. For example, if you have diabetes and go years without getting treatment, that condition could eventually lead to heart disease—which would be incredibly costly to treat. When was the last time you went in for a physical? If it’s been longer than 12 months, consider signing up for an inexpensive insurance plan from a reputable provider today.
Other Benefits
You don’t have to be self-employed or even own a business in order to enjoy health insurance benefits. If you don’t have access through your employer, there are a number of small business insurance companies that provide coverage options designed specifically for freelance workers. These plans might allow you some flexibility in terms of deductibles and out-of-pocket expenses (which can help keep healthcare costs down), but it’s important to shop around since you might get a better deal elsewhere. Additionally, if you’re an independent contractor who works from home on occasion, make sure your policy includes protection against damage to your property. It doesn’t hurt to check with a few different providers before making any decisions—you never know what kind of deals are available until you ask!
Check Out The Claims Experience Before Signing Up
Before taking out a policy, it’s important that you get in touch with an agent from each company and ask about their claims experience. A company may have a low premium but if they can’t pay claims, what good is it? A great place to start shopping around is with agencies that specialize in small business insurance. They typically know which companies are most likely to pay your claims without fail and will steer you clear of those who won’t. If you do end up signing up with one of these agencies, be sure to ask them how long they’ve been working with a particular carrier before committing. If it’s only been six months or less, take that as a red flag—especially if there aren’t any other clients on file.