Google+
It’s that time of year when many small business owners are reassessing their health plans. Anthony Lopez, eHealthInsurance.com’s Small Group Specialist, provided us with this guest post offering tips for handling open enrollment.
(1) Have a frank discussion with employees: Health care costs are increasing for a number of reasons, including increased utilization and mandated benefits. If employees understand the challenges this presents to your business, it may make picking up a greater share of the cost easier for employees to stomach.
(2) Encourage employees to find the best plan for them: Surveys have shown that most Americans who get insurance from an employer have NO idea what their employers contribute towards their health insurance on a monthly basis. The average group health insurance policy costs families $1,147 per month, and some employees are paying 50 percent or more out of their own pocket. With costs like this, it’s important for employees to pay attention to their plan details and what may be changing. And if employees are paying high insurance rates every month, and barely using their coverage, it may be time to rethink their options.
(3) Learn about the new tax credit: Not all small businesses can afford to offer health insurance. But new this year are tax credits of up to 35 percent of premiums are available for small businesses with 25 or fewer employees with annual wages of less than $50,000 that buy their employees health insurance. This credit is available starting with the 2010 tax year. Yet, employers need to be covering 50 percent (or more) of the total premium cost (50 percent of a benchmark premium) for their employees.
Tips for Helping Employees During Open Enrollment
(1) Review every plan: Employees sometimes wait until the last minute to choose their plan. But by carefully weighing their options, they will be better-positioned to make sure that the plan they choose will cover the health care benefits they need for the coming year.
(2) Evaluate premiums: Premiums are increasing, but if saving on their monthly share of the premium is a priority, employees may want to revisit their current plan and opt for one of the less expensive plans available.
(3) Remind them of out-of-pocket expenses: When looking at their overall health insurance cost, it helps to know their plans’ copays for doctor and emergency room visits. If they visit the doctor frequently, these can add up. If they don’t visit the doctor but a few times a year, it may save to look for a plan with a higher copay and lower premium. Employees should factor in how much they are spending on their out-of-pocket drug payments too, if they have regular prescriptions they need to fill.
(4) Shop smarter: Buying only what you need can help save on the monthly premium. Choosing a high-deductible plan is smart for some individuals and families because it typically reduces monthly premiums, but you must be prepared to pay the amount of the deductible in the coming year as healthcare needs arise.
(5) Consider an HSA: Some employers offer a higher deductible option with a Health Savings Account (HSA). Depending upon healthcare usage, this can be a good option for savings because money can be acquired pre-tax in your HSA to cover unexpected health expenses not covered by your health plan. Unused savings can also roll over year-after-year through retirement.
(6) Compare with their spouse: Check your spouse’s plan to see if the employee share of the premium is more or less than your plan. Especially if their spouse works for a large company, it may be more cost-effective to insure themselves or their family under their plan.
(7) Track health expenses: Regardless of the plans they choose for 2011, it helps to track all health care costs, including insurance premiums, copays and drug expenses. This will provide employees with the knowledge they need to evaluate their health care options for 2012.
Photo Courtesy: Anthony Lopez/eHealthInsurance.com
Web.com is now offering forums designed to support small businesses in cities throughout the US. Learn more about these forums here: http://Businessforum.web.com/
Tags: health insurance, healthcare
Posted in Workforce | No Comments »
