Since companies that offer their workers health plans enjoy high rates of retention, productivity and employee satisfaction, Detroit-based startups should consider making medical insurance part of their standard compensation package. However, to receive those benefits, founders need to ensure that their chosen health insurance actually meets their employees’ needs. To do that, owners need to ask themselves five questions when shopping for company health plans.
What Level Of Coverage Does Your Workforce Need?
In the United States, employer-sponsored healthcare for small group plans (50 employees or less) fall into one of four different tiers. Each plan requires employees to pay monthly out-of-pocket costs, and have different coverage based on which tier the plans fall into. Bronze health plans usually have the lowest premiums and highest out-of-pocket costs – copays, deductibles and coinsurance. Platinum plans typically have the highest premiums and lowest out-of-pocket costs.
- Platinum or Gold level plans may be a good idea for employees who make frequent doctor visits or need prescriptions on an ongoing basis.
- Silver plans cost a little less per month than platinum or gold plans and may be a better option for those who don’t expect to use medical services or prescriptions very often.
- Bronze plans cost less per month in premiums but also pay less of costs when care is needed.
What’s The Composition Of A Health Care Provider’s Network?
Before purchasing a company health insurance plan, it’s important to understand the composition of the provider’s network. A provider’s primary care physicians, hospitals, pharmacies, imaging facilities, specialists and labs can have a big impact on determining how useful one of its plans will be to your workers. For instance, if the majority of your staff won’t be able to keep their current doctors with the plan you’ve chosen, they may choose to seek employment elsewhere.
How Much Is Health Care Going To Cost?
The higher tier the plan, the higher its monthly premium typically costs. However, plans with higher premiums also have lower out-of-pockets costs. While it’s important to select a company health plan that meets your team’s needs, it’s equally important that said coverage doesn’t negatively affect your company’s profitability. As such, it pays to purchase health insurance through a provider that offers small business plans with different funding options, network preferences and customizable benefits.
Do Your Employees Needs More Than One Type Of Insurance?
Depending on the makeup of your workforce, just one company health plan may not fit your needs. A certain portion of your staff may need a high-coverage, low-premium plan while another segment may want to go with a plan that maximizes their take-home pay. However, small business owners should be aware of the fact that some large national care providers don’t give small businesses the option of offering more than one plan to its employees. To avoid damaging employee morale by offering a one-size-fits-all plan that really doesn’t, Michigan entrepreneurs should seek out a regional provider that can properly address their needs.
Because of the range of benefits they offer, Detroit-area small businesses have a significant incentive for offering company health plans. And while entering the world of health care may seem daunting, purchasing coverage that satisfies employee needs without hurting your bottom line can be easier than you think.
To learn more about affordable healthcare plans for your small business, visit Health Alliance Plan.
For more tips and inspiration for small business owners, visit Small Business Pulse Detroit.