Group Health Insurance for small Businesses
“What are the most efficient ways to save money on taxes while also providing valuable benefits to employees?” As a financial consultant who specializes in assisting self-employed individuals and small business owners, this is the most frequently asked question I encounter. One avenue that's often overlooked in this context is group health insurance, particularly for businesses with fewer than 10 employees. So let’s talk about the importance of group health insurance for businesses with less than 10 employees.
Why Group Health Insurance?
First, you may think that offering group health insurance is a luxury only larger corporations can afford. However, businesses with as few as one employee can qualify for group health insurance plans and these plans often provide better benefits at a lower cost compared to individual health plans.
Second, a well-chosen group health insurance plan can save you and your employees a significant amount on taxes. For instance, premiums are typically paid with pre-tax dollars, reducing your taxable income. In the right circumstances, the savings can be significant, making your business more profitable and your employees happier.
Third, group health insurance is one of the most effective tools for attracting and retaining high-quality talent. According to various studies, group health insurance ranks as the number one benefit that employees value the most. This means that in a competitive job market, offering a robust health insurance plan can make your job offer stand out. And for small businesses, having and retaining a high-quality talent can make all the differences. If your employees are dissatisfied with their current health plan, this can create unproductive stress with your employees and that can divert your attention away from running your business.
But what if you already have a group health insurance plan?
Are You Happy with Your Current Broker?
While group health insurance is essential, the service you get shouldn't be generic. If you already have a group health insurance plan, how often does your current broker check in with you? Do they follow up to discuss whether your plan is meeting your current needs or offer updates on new products or laws affecting your coverage? If you answered no to one of these questions, it might be a good time to explore your options. As a business owner, being proactive rather than reactive is crucial for running your business effectively.
The truth is, that not all brokers are created equal. In the ever-changing landscape of healthcare, it's important to have an advisor who keeps up with the times and works for your best interests. Ask yourself:
Have I been given options to choose from a variety of different companies and plans when selecting a group health insurance plan?
Does my current broker make an effort to explain the intricacies of the policy I’ve chosen?
Am I confident that my broker is suggesting a plan that is the best fit for my business and my employees, not just the one that pays them the highest commission?
Getting a second opinion on your health insurance strategy can be a game-changer. It can provide a fresh perspective and might reveal opportunities for better rates, better coverage, or both.
If you find yourself questioning the effectiveness of your current health insurance plan or broker, it may be time to seek a second opinion. Feel free to get in touch with us to discuss how we can help you with a tailored strategy that aligns with your business objectives and employees needs. Our goal is to provide a comprehensive financial strategy that covers all aspects, including a group health insurance plan, to ensure that you and your employees have the best coverage possible. Let us help you build a financially secure future for your business and its most valuable asset—your employees.