From November 15th to December 15 of each year there is a Special Enrollment Period for small businesses to get group health insurance. During this one-month window, you are exempt from contributing to premiums, and only one employee needs to sign up to create a group plan. So you pay nothing out of pocket, and in return your employees can access health insurance. This of course can be paid for with pre-tax payroll deductions instead of after-tax income, and also comes with the greater flexibility and savings that come from group plans. It’s a win-win – provided you use the Special Enrollment Period to sign up for employer health insurance.
With the window fast approaching (and quickly closing), you need to pick a plan soon, but it’s important not to rush the selection and commit to the wrong option. Keep these considerations top of mind:
Cost
Employees will still have to pay for healthcare out of pocket even if this arrangement lowers their costs significantly, so it’s important to pick the right plan. Base that on coverage as well as total costs (premiums + deductibles) and in consideration of typical employee compensation. Picking coverage that’s financially stressful or unobtainable for employees only causes resentment and does nothing to help with recruiting or retention as intended.
Size and Structure
The size and structure of the coverage network is also important. A larger network may be more convenient and have greater selection, but that comes at a higher cost. Alternatively, smaller networks can be more constraining but less costly and come with better coverage. The key is to balance convenience against cost and choose whatever best serves the employees.
Plan Type
Employer health insurance plans primarily come in three forms. Preferred Provider Organizations (PPOs) are the most flexible in terms of the network, and they can be the least expensive as well. Plans from Health Maintenance Organizations (HMOs) allow employees to tailor their coverage (and costs) to meet their specific needs, and they tend to offer deep coverage but only in network. A Point of Service (PoS) plan has many of the same advantages as HMOs but with greater freedom to see doctors out of network.
Scalability
Can a group plan scale to cover more employees, and if so, how many more? Can the coverage expand or change? It’s important to know how well a plan can meet changing needs over the long term. A strong plan now can turn into a regrettable one later.
Before the Special Enrollment Period Begins
Start looking into coverage options ASAP. Equally important, enlist the support you need to choose wisely, based not just on your insurance requirements but also in light of your business strategy and growth trajectory. It really pays to get this right, but there isn’t much time to spare, so contact Proseer soon.
