How Can Small Business Owners Afford To Pay?
Small business health insurance has become so expensive, that it's hurting the economic growth of many small businesses.
For many affordable group health insurance can be so hard to come by these days that starting a small business can be too expensive or can lead to employees struggling without coverage. On the other hand, failing to insure workers is a risk not worth taking.
The cost of health insurance has ballooned in the last 10 years, and is now hindering economic growth, keeping many entrepreneurs from starting a small business. With costs already tight for new companies, to pay $2,500 per year, per employee is a difficult handicap to overcome.
The result: many employees aren't covered, a situation that can lead to high turnover or even liability.
Affordable group health insurance is, however, easier to find than individual health insurance, mainly because health insurance agencies stand a better chance of saving money by covering groups. The odds are that only a few people in the group will get injured or sick when under such a plan, meaning that health insurance companies stand to make money when they cover several people. However, in terms of individual health insurance prices are always much higher, so when small business owners shift the burden of health insurance to their employees, the employees almost always fail to get coverage. The cost of covering a family can be upwards of $7,000 a year, way too much for many families to afford.
So what happens? People get hurt, people get sick, businesses lose money, and employees sink deeper into health coverage debt.
But some small business health insurance companies are offering employers health plans that incentivize small business. For example, in some cases a health plan may require the employer to pay half of the premium, while the employees pay the other half. Or perhaps the employer can offer several different plans, at different costs, allowing the employee to choose the kind of coverage they need and the kind of prices they can afford. Slowly, options are beginning to appear. Some states like Kentucky and Maine are even offering subsidized health insurance in order to minimize health care costs and support the growth of business.
Facts on:
Small Business Health Insurance
Did you know...
The cost of covering a family can be upwards of $7,000
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It's not health coverage for everyone, but it's a step in the right direction.
Of course it's best for small business owners to shop around and find a variety of options for their employees. It will not only attract new hires, but help to keep the established ones healthy, happy, and working to fuel the growth of the business.
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