Shopping for Small Business Medical Insurance Made Easy

What is small business health insurance (and are there alternatives)?

Most people are familiar that health insurance is offered by larger corporations. It is often a much desired part of benefit packages. It can be a deciding factor when top talent is choosing between working for your business or a competitor’s. Not everyone realizes that small business health insurance plans are frequently part of a benefit package. These can take the form of dedicated medical insurance offered by carriers, like those designed for larger companies. However, there are alternatives to these high-premium offerings, so it pays to shop around for health plans for small businesses.

What you need to know about employee health insurance requirements

Let’s start with the basics, as this may be the first time you’ve considered offering  health insurance plans to your employees.

First, you need to have at least two employees. In some states, you as the company owner, can also count yourself as an employee. Make sure to check your local employment laws.

Next, you need to think about the extent of the coverage you want to offer. For example, do you want to provide health benefits to your employees, as well as to their families? Decisions like these will likely come down to how much you can afford to pay, which brings us to the next consideration.

As a small business owner, you’ll be required to cover at least 50% of the monthly premiums for each employee’s health plan. This minimum percentage can vary from state to state, and even from one health insurance provider to another. You must also factor in the requirements of the Affordable Care Act (ACA). The plans you offer must meet the ACA standards on benefits, coverage and affordability.

Why you should consider offering health insurance to employees

You’re not required by law to offer any kind of health insurance if your small business never exceeds 50 employees. But there are many good reasons for doing so. Workers who feel protected by health insurance are generally happier, more productive and feel more valued — improving employee retention (crucial if your company relies on particularly skilled people). Once your small business decides to offer group health insurance, all new eligible employees will need to sign up within their first 90 days.

You can shop for small business health insurance plans year-round, meaning you can start anytime. Just bear in mind that, having settled on the one you believe is right for your employees, you may be required to agree to a one-year contract, minimum.

What’s the alternative to traditional group health insurance policies for employees?

Perhaps simplest of all is a much more affordable self-funded group health plan. It provides the same high-quality health benefits you’d associate with individual employee plans from large carriers, but for less than you’d spend in premiums.

How the Self-Funded Program through Allstate Benefits works

Everything is covered by a single, predictable monthly payment, split three ways.

• Claims fund: Your contribution to the claims account is determined upfront and is guaranteed not to increase for a full year as long as there are no changes to your group's benefits or enrollment.

• Stop-loss insurance: If your group's claims are higher than expected, stop-loss insurance protects your business's assets.

• Administration: All day-to-day administration of your self-funded plan, including claims processing and customer service, is taken care of for you, so you're free to focus on your business. 

  Pick your level of coverage — and get a quote

The Self-Funded Program through Allstate Benefits provides flexible health coverage and options for small to mid-sized companies. We’ll find a plan to suit your needs, whether you have two or 500 employees. Visit our website and get your quote today.