Small Business Health Insurance For Startups

Every startup, whether big or small, must cater to the health insurance of its employees for the real long-term benefit of all the stakeholders. Be quick about it if you are also a starter.

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Health care for startups
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Everyone is not tailor-made for doing business. It needs courage, vision, and endurance to be a successful businessman. Entrepreneurs risk their time and money to reach a decent position on the market. They do both things: enjoy all the profits and bear all the losses. So, being an entrepreneur is always a tough and risky task. However, in any case, employees’ health must be their topmost priority all the time. No matter how big or a small business may grow in the long run, health care for startups and employees must be there on top of all. Besides, health insurance for startups always proves beneficial for both the parties: the workers and the work owners.

The Importance of Health Care for Startups

Health care for startups
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When planning to start a company, the first thing you must consider is to provide quality health insurance to your employees. A quality health insurance plan is the one that suits your employees best. Your employees are vital and so is the health care plan for them. The more a company focuses on the available health insurance plans for its workers, the more it makes progress, as employees are the backbone of every organization.

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In the United States, most employees expect to receive health insurance from their employers. For startups, it is good to provide health insurance to their workers as it will attract the best employees and top talent. In the US, there exists legislation known as “Employee Mandate”. A part of this states that it is mandatory for an organization, whether a startup, with more than 50 employees to provide health insurance to all of them. Such is the importance of health care for startups.

What Benefits Health Care Confers to Startups?

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Health benefits are a range of health services under the health insurance plan. This plan includes the fee of most physicians, emergency hospital care, prescription drug coverage, pregnancy matters, childcare treatment, etc. With so many benefits, an employee feels fully dedicated and committed to working for the welfare and progress of the company he is working for.

Why Should Startup Owners Get Health Insurance for Their Employees?

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Some of the benefits startup owners enjoy through opting for one of the best health insurance plans for their employees are as follows.

It Attracts & Retains Highly Talented Employees

Retaining an employee is more cost-effective as compared to hiring a new one. In various respects, a retained employee will save a number of expenses for your organization. For instance, it will save the cost regarding the electronic commercial advertisement about the vacant job positions being played on different channels. It will also save you the operating cost regarding the training of a new employee. There will be less headache for HR to select a top talented candidate from the existing pool.

Health insurance can be a big motivational factor that urges many top talented candidates to prefer your organization over others. Job seekers are aware of the significance of health insurance. While selecting an organization, they weigh and fancy their chances towards a much better and reputable company.

It Reduces the Operating Cost in the Long Run

For start-ups, health insurance is a better way to reduce their operating costs without compromising on the core parts of the setup. Many employees and candidates are quite willing to choose jobs with moderate salaries if they are getting health care benefits from the respective companies. They know that purchasing a health insurance plan for themselves as well as their families is costly. Employees, therefore,  always prefer company-sponsored health insurance plans.

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It Offers Tax-cuts

Nowadays, businesses that offer health insurance plans to their employees can stand to gain relief in tax. They can subtract and record the fraction of their contribution to the plan as business expenses and later on obtain a tax advantage. And if you have got your startup incorporated, your health insurance as the business owner is also deductible alongside your contributions for your employees.

How Much Startups Cost You for Health Care?

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The cost of health insurance depends upon the plan that you and your employees choose. Moreover, it also varies with your business location, the employee’s age, and what benefits and coverage you prefer.

When startups consider different small insurance health options, it may be very fruitful to have a look at the metal levels of each group health plan. Metal levels are like categories. Their names are bronze, platinum, gold, and silver. These levels differ from each other with respect to the plans they offer. If you are opting for high insurance, you will buy a platinum plan. However, if you have a budget of low value, bronze will be perfect for you.

Let us have a look at metal levels in detail.

Platinum Level for Startups Regarding Health Care

Platinum plans are superior if pricier. These are the most effective choice for an old workforce with medical circumstances that necessitate them to use a wide range of expensive tests, specialists, and safety measures.

Silver & Gold Level

Employees with young families and several dependants frequently fancy these plans. This is because they typically cover more of the cost of their frequent visits to the physicians.

Bronze Level

These normally hold a lower monthly premium but a sky-rocket deductible. They could be fine for younger, single healthy workers who don’t expect to get ill quite often. There is typically about a 30 – 40% price difference between a bronze plan and the platinum plan. It costs more but covers more of the cost of care.

As per a research published by e-Health,

  • The average per-person premium for small group health insurance was $409 per month in 2018. It was $440 for an individual plan.
  • Small group health plans had an average deductible of $3,140 per year, compared to $4,578 for individual plans.
  • To purchase insurance on the marketplaces, your small business has to cover at least 50% of the cost of health insurance for your employees (without their families). On average, the premium for employees at small firms nationwide was $6,163 a year. It equals $513.58 a month, according to a Kaiser Family Foundation report earlier this year.
  • So if, as an employer, you covered half of that, your small business share would be approximately $260 per month per employee. It adds up to $3,120 a year per employee. Compare that to the cost and 401(k) benefits for employers.

Which Health Care Plan for Startups Suits Your Company?

Health care for startups
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The increasing costs of health care are a dilemma not for individuals alone. Rather, they have also shocked businesses that make health benefits a priority for their employees.

Small businesses have been mainly vulnerable. Over the last 15 years, the cost to cover one employee under group health insurance rose nearly 200%.

These indefensible costs coupled with the hassle and all kinds of traditional group benefits have caused many small businesses to decrease health benefits. This is a losing strategy for 2020 and the years to come. For the predictable future, small businesses will face a viable war for talent. Here, health benefits will be very important if these businesses are going to accomplish something (success).

Here is the list of famous organizations that are offering health insurance to startups.

1. USAA Health Insurance

Health insurance coverage is for US citizens under the Patient Protection and Affordable Care Act (ACA). It fashioned a marketplace of plans with a variety of costs and benefits that match particular regulations.

Furthermore, other types of health plans like short-term health insurance plans or indemnity plans are becoming more widespread. Such plans are non-fitting. It means they might not offer all the least essential benefits for the ACA law. However, they may still be a choice for you. USAA health insurance for startups is one of the best insurance providers for small startups.

2. UMR Health Security for Startups

For small businesses, health insurance is a serious factor in retaining and hiring employees, maintaining productivity, and employee satisfaction. UnitedHealthcare offers a wide range of group health insurance options. They are well efficient to help your small business save money and prop up your employees’ health and wellbeing.

3. Agile Health Insurance

Agile healthcare is a licensed insurance company that provides information on insurance products. Moreover, it is a nationwide health insurance agency with a license and rated A+ by the Better Business Bureau. It stands by its mission in offering consumers a complete and easy-to-use podium. Then, they can avail themselves of a private health plan option such as short-term health insurance.

4. Florida Blue Health Insurance

Florida Blue offers affordable health insurance plans to individuals, families, and businesses. It is one of the reliable organizations to offer insurance plans to startups.

5. Meridian Health Insurance

MeridianHealth is the premier government healthcare insurance service organization in Michigan and Illinois. It is providing several plans to startup organizations for their employees.

6. Psi Health Insurance

For over 20 years, PSI has been providing low-cost International Student Health Insurance for those studying in the USA. It is one of the reliable insurance options for students. The reputation of PSI health insurance is very high indeed.

7. NYU Health Insurance

The high cost of healthcare in the United States presents a potentially serious financial risk to students. Therefore, NYU offers all the students enrolled in degree-granting programs to preserve health insurance. The majority of students have enrolled automatically in the NYU sponsored Student Health Insurance Plan as a component of the course registration route.

8. Cigna Health and Life Insurance Company

As a global health service company, Cigna’s mission is to perk up the health, well-being, and peace of mind of your startup employees. Cigna serves by assembling health care in simple, affordable, and predictable insurance plans.

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9. UF Student Health Insurance

Maybe, your employment condition is altering and you are involuntarily trailing health insurance coverage. You may be eligible for buying the UF insurance plan due to your circumstances. It is really affordable.

10. Optima Health Insurance

Optima Health offers health insurance coverage for individuals, families, and employers. Their plans include wellness programs, online resources, extra savings, etc.

11. ISO Student Health Insurance

ISO strives to provide the best health insurance for international students who aim to study in the United States. They research the insurance requirements of your institute and offer you insurance plans that meet these requirements.

12. AAA Health Care for Startups

It covers US citizens and foreign nationals who need temporary medical insurance while traveling outside their home country. AAA provides up to $2,000,000 of medical coverage. Coverages are accessible from 10 days minimum to 2 years maximum. It also covers business or leisure traveling that includes medical evacuation, repatriation, and your choice of deductibles.

13. Rutgers Health Insurance

Medical care in the United States is costly. At Rutgers, all the local and foreign staff along with their families may have a minimum level of health insurance coverage.

14. FSU Health Insurance

Full-time registered post-secondary domestic students are automatically safe under the FSU Health Plan. They can avail themselves of prescription drugs, dental benefits, and accident benefits.

How to Get Health Care for Startups

Health care for startups
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Suppose you approach some health insurance providers. They tell you that your company isn’t large enough to qualify for a group plan. Or you discover that rates are extremely high. You may be wondering how to even find reasonably priced health insurance for your small business. Possibly, you may not have a direct approach to any of the above-mentioned insurance companies for certain reasons. If so, here are two sources to guide you the best in this regard. You may consult with them at your ease.

  • SHOP:

This is a consultant. Some health insurance providers make plans available to small businesses via The Small Business Health Options Program (SHOP) marketplace. However, the options may still be very much narrow to choose from. This is due to company size and the state in which the company is located.

  • Broker:

Working with an insurance broker is also an option for entrepreneurs to consider when looking for group health coverage. Brokers are actually insurance agents with licenses. They can help connect entrepreneurs with insurance companies. They offer health insurance plans for small businesses or startups.

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Inbound Professor with a focus on English literature. Also an expert in digital humanities, law and literature, political theory, early modern literature, global studies, and the history of political thought.