When choosing a health insurance plan, it’s easy to become overwhelmed and make mistakes. Here is what to avoid when making such a decision.
As a small business owner, when choosing a health insurance plan, it’s not that hard to become overwhelmed and make a mistake. Understanding the ins and outs of health insurance can be complicated. Plus, your benefits can make or break whether employees decide to work for or stay at your company. Here are some mistakes you can avoid when shopping for health insurance plans for employees.
Not Understanding the Law
The healthcare industry is a highly-regulated sector. That’s why licensed brokers stay up-to-date on the latest federal and state requirements. A broker can help you understand your state’s law, eligibility requirements, or tax provisions. Plus, there are incentives.
For example, qualifying for and enrolling in the Small Business Health Care Tax Credit could be worth up to 50% of the costs you pay for employee premiums. It’s also worth looking into the Affordable Care Act Tax Provision for Small Employees to know what you’re responsible for and see if you’re eligible for a few benefits. When you don’t do your research, it could lead to costly mistakes.
Not Asking Your Employees What Matters to Them
The best consideration for choosing health insurance is picking a policy that benefits your employees. Talking to your team is the only way to know which plans will best serve them. Otherwise, you might overspend on health insurance plans that employees don’t use. Plus, choosing health insurance isn’t a one-size-fits-all ordeal. A single plan option could end up leaving people’s healthcare needs unmet.
Not Using an Experienced Broker
Once again, understanding the ins and outs of health insurance can be complicated. Even brilliant people might not realize what a deductible or Health savings account (HSA) means. Therefore, teaming up with a licensed broker can give you peace of mind. Brokers are well-versed in jargon and can simplify the entire process for you.
Not Asking Brokers about Tax-Advantaged HSAs
An HSA is a long-term, tax-advantaged account an employee sets up to pay for healthcare expenses. HSAs can help save you on premium contributions while still offering health coverage for your employees. HSAs only apply to specific HSA-compatible insurance plans that typically have high annual deductibles and lower monthly premiums.
Not Parting Ways with a Health Insurance Carrier or Plan That no Longer Benefits your Business or Employees
One of the core differences between individual and small group insurance is that you can switch plans anytime. If you pick a plan that’s not working for you or your employees, you don’t have to keep it until the year ends or during the next open enrollment period. However, we advise that you have your new provider squared away to ensure employees don’t have coverage gaps.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.