Cost-effective health benefits for your employees--is this possible? Of course! Your small business needs to spend its resources frugally, and individual health insurance is a great place to start. Here is how you can create cost-effective health benefits by using individual health insurance reimbursement.
Decide Now to Be Frugal
Before you do anything, you need to make a choice: decide now that your small business’s health benefits are priority. Though there are many ways in which you can save money, choosing the correct health benefits for your small business will have a large impact on how much you can save, and also on employee retention and hiring.
Understand Why Individual Health Insurance Reimbursement Helps You Save
Just like buying any product, it’s important that you do your research. As you research individual health insurance reimbursement, you’ll find that providing it for your employees can cost up to 60% less than traditional group health insurance and is administered in 5 to 10 minutes a month.
Furthermore, if your small business is made up of ten employees total, it’s important to see how individual health insurance reimbursement is beneficial by understanding costs and savings. Calculate what you’re paying now for insurance now (if you are) and then make an estimate on what you would pay by switching to individual health insurance reimbursement based on your monthly allowance per employee (see below).
For a more detailed breakdown of the savings between group health insurance vs. premium reimbursement, click here.
Estimating your savings will give you a concrete idea of how much your small business could be saving in a month and a year and broadens your understanding of how individual health insurance reimbursement is a cost-effective way to offer health benefits.
Set Your Budget, Control Your Costs
Being able to set, control, and predict all health benefits costs is revolutionary for many businesses. Individual health insurance reimbursement gives your business controllable costs because:
You define your budget by setting any contribution amount to employees’ healthcare (i.e. $100/month for Jr. employees, $150/month for Sr. employees, etc.).
You give employees access to monthly healthcare allowances.
You allow employees to select their own individual health insurance policies.
You reimburse employees only for eligible health insurance premiums, up to the amount in their healthcare allowance.
Let Individual Health Insurance Reimbursement Do Its Job
Once you incorporate individual health insurance reimbursement into your small business’ health benefits, you’ll immediately see the benefits. Employees will save on monthly premiums because they’ll be getting a set healthcare allowance, coupled with premium tax credits (if eligible), you’ll be saving money by not having to contribute large amounts of money to group health insurance, and best of all, your employees will be happy.
What do you think about using individual health insurance reimbursement as a cost-effective health benefit for your small business? Comment below and let us know.