Tips for Buying Small Business Health Insurance

Owning your own business isn’t easy.  Whether you are a startup or an established corporation, there are decisions that must be made in order to maintain your status as an industry leader.  One of these decisions is figuring out what type of small business health insurance you should offer to your employees.  While this might be a difficult thing to decide on, it’s important you weigh your options when selecting plans before you finalize everything.

One thing to consider when purchasing health insurance plans for your business is the Patient Protection and Affordable Care Act.  This set of legislation, also known as the ACA helps small businesses by offering tax credits and perks to those who elect to participate.  This can offset employer costs.

In order to qualify for the tax breaks there are a few things that you need to do first.  They are as follows:

  • Annual average annual wages of less than $50,000.
  • A contribution of at least 50 percent toward employee health insurance premiums.
  • Fewer than 25 full-time equivalent employees. The Kaiser Family Foundation, a health care policy group, says full-time equivalents are determined by adding the hours of all full and part-time employees. Under this method, two half-time employees are equivalent to one full-time employee.

The Small business administration has set these standards for those who wish to receive a tax credit of up to 35 percent of the health insurance premiums paid – so it is in your best interest to take advantage.

In addition to qualifying for these breaks, you might want to follow a few simple rules while deciding on plans.  First off, get a professional opinion.  Asking your neighbor their position on health care might not be the best decision, call a reputable insurance agent instead.  Also, never drop coverage completely for your employees.  This option might force people to quit, leaving you with a lot of positions to fill.  This will in turn cost you money because you have to find replacement workers and train them.  Finally, understand what your premiums are and how trying to lower it will effect coverage.  There is no sense in paying less if you aren’t covered properly.  If you still have questions on which direction you should move in give one of our professional insurance agents a call today!

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