With the relationship being 50-50, it is just right for the employees to expect health insurance from employers who also depend on their productivity for survival. The report has it that, 60% of the US residents getting medical cover received their health care plans from their employers.

Small businesses that always have their workers at heart and provide health insurance always attract the best-qualified workers and hardly lose existing ones on their payroll.

Due to the cost of medical treatment, costs of prescription drugs among others, providing health insurance to employees becomes a big headache for most firms because it drains them of their finances. Most businesses are trying to change the kind of medical coverage being provided by looking for limited medical care coverage that wouldn’t hurt their stand.

Small businesses (those that have employees ranging from 2 to 50) fall under specific plans for health insurance companies since their packages differ based on the number of employees. The business seeking to get insurance for their employees selects the group insurance it wants and enrolls its employees, paying at least 50% of the monthly premium, the balance being paid by the employee himself.

Tax deductibles come with insurance premiums. Due to medical history, group insurance can not be done away with. It is a big advantage because everyone gets covered including those who have already insured themselves and the opposite.

During Barrack Obama’s tenure in office, he passed a bill that seek to provide minimum health insurance coverage under the state-run insurance exchanges at reasonable premium rates. So, therefore, small businesses would automatically (or businesses with lesser than 100 employees) would gain access to SHOP exchanges.

What Is SHOP Exchange?

SHOP is a short-term for Small Business Health Options Program. It is an insurance exchange designed to help small businesses compare health plans and enroll in coverage for their employees.

It was created through the Affordable Care Act, SHOP was an option in every state.

There are a lot of features available for small business health insurance. Below are a few of them:

• Preventive medical services get first dollar benefits
• Employers are allowed to select hospitals and doctors from a long list of options
• Specialists can be consulted without referrals
• Tax benefits
• Worldwide emergency coverage
• Independent advocacy service will help employees and employers to navigate the system for money-saving alternatives

In the USA, many states take control of health insurance as well as subsidizing plans for small businesses. In some instances, the states provide avenues for small businesses to form groups and apply for health insurance.

Others too guarantee group insurance to small businesses that are sole proprietorship-owned.

Ways for small businesses to reduce insurance costs:

A large part of cash spent from the coffers of small businesses goes into the payment of health insurance premiums. Since it is an important expense, it can’t be halted or discontinued.

The expenses can however be minimized through the ways stated below:

• Increasing employee contribution to the premium by even 5-10 percent will make a big difference to the costs of the small business.
• Start a wellness program to ensure that the employees remain healthy and do not need expensive treatment.
• Opening a health service account will help since these are tax-free accounts and can be used to pay for insurance costs
• Opting to join groups of small businesses since group health insurance is lower
• Search for the company giving the cheapest health insurance coverage.

Above are some pieces of information on Small Business Health Insurance.

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