For all companies, but especially small businesses, group health benefits insurance packages can not only save money on taxes at the end of the year but also protect their employees. The beginning of the year is typically when small businesses will begin looking into group health insurance for their employees.
If you are in need of group benefits, there are several things to keep in mind.
A Refresher on Group Benefits
Group health insurance is also known as group health benefits and can be offered by businesses to their employees. It is a type of coverage that can include but is not limited to
- emergency care
- general health care
- dental care
- prescription drug coverage
- vision care
- life insurance
The company pays the premiums on behalf of their employees, which helps them to pay less in taxes at the end of the year. The group health insurance plan can be designed for a group the size of an individual, family, or group plan that includes employees, spouses, and children.
Small businesses often offer their employees group health plans because they have a lower monthly payment than larger group plans.
The Different Factors to Consider When Making a Business Benefits Plan
Offering group health insurance plans help small businesses to gain valuable tax benefits. When it comes to creating a business benefits plan, employers will need to take several different things into consideration. For example:
How many employees do I have?
Small business owners can either purchase a plan from a small group insurance provider or a large group insurance provider. If there are fewer than 25 people on the plan, a small group policy is typically less expensive compared to purchasing from a large group insurance provider.
What is my open enrollment period?
Typically, employers will have an annual open enrollment period where they can purchase group health insurance. An open enrollment period typically begins at one set date of the year and closes on another set date of the year. This is different from the open enrollment commonly referred to with individual health insurance.
During this time, employees are allowed to make changes to their benefit plans. However, if an employer wants to offer group health insurance year-round, they can do so without restrictions from the company’s open enrollment period.
What is my employee turnover rate?
In order to get a better handle on what their financial costs will be in regards to offering a health plan, small business owners should calculate their monthly profit margin.
For example, an annual profit margin of $200,000 per year is equivalent to a monthly profit margin of $16,666. Small business owners will need to look into what their employee turnover rate is and whether or not it is worth the expense in order to offer group health insurance coverage at all times of the year instead of just during open enrollment.
Creating a Business Benefits Plan
These are just a few of the factors small businesses must consider when deciding the specifics of a group health benefits package for their employees. Other questions businesses must ask themselves include
- What are the financial costs of group health insurance?
- How much would premiums cost each month?
- What are my employees’ needs in regards to their medical care?
- What is the best benefits plan for my employees?
For these questions, Bethany Insurance is the expert at providing small businesses with solutions for their health care needs in an ever-changing healthcare marketplace.
We know that the questions about your employees’ needs might seem overwhelming, but Bethany Insurance can help you find out which benefits package will work best for your employees.
No need to fumble around with online searches or paperwork. Bethany Insurance provides affordable group plans so there are no surprises when it comes to premiums or deductibles.
Reevaluate Your Current Benefits Offering at the Beginning of the Year with Bethany Insurance.
Offering a benefits plan to your employees can be beneficial for both businesses and employees. By reevaluating your current group health benefits package, small businesses will ensure that their company offers insurance coverage that is not only beneficial to them but also beneficial to their employees.
By working with Bethany Insurance, small businesses can find the best plan for their employees and ensure that everyone is taken care of when it comes to their health. For more information, contact Bethany Insurance today to make an appointment to talk to one of our agents to begin the process of creating a group benefits plan.
