When it comes to employee benefits, health insurance reigns supreme. Finding the best health insurance plan is critical for employers who want to attract the best possible candidates, keep existing employees happy, and control costs.
The search can be daunting. Between plan types, providers, deductibles, copays, and endless other considerations, it’s far from obvious which plan is best for your clients’ businesses. As a broker or trusted advisor, this is where you can shine brightest. You can take the guesswork out of choosing the best health insurance plan for your small business clients.
This guide will help you do that. In it, we’ll cover:
First, let’s cover the basics by discussing what different plan types mean for your clients.
Although more exist than we can fit into this list, there are at least four common types of health insurance plans that most insurers offer. They are HMOs, PPOs, HDHPs, and Group Health Plans.
Group health insurance is the most common form of coverage for small businesses. It allows employers to offer a single health insurance plan to all eligible employees, pooling together the risks and benefits for the group.
Group plans are ideal for businesses wanting to provide a uniform level of coverage to all employees.
HMO plans are known for their lower premiums and emphasis on preventative care.
In an HMO plan...
HMOs are great for businesses looking to keep their costs predictable, as the emphasis on in-network providers leads to lower premiums and copays. The downside is that employees have limited flexibility and may need referrals to see specialists.
PPO plans offer more flexibility in choosing healthcare providers.
With a PPO plan...
Employees appreciate the flexibility, especially if they need specialized care that may not be available in-network. On the flip side, there are higher premiums and out-of-pocket costs compared to more restrictive plans like HMOs
HDHPs have lower monthly premiums but higher deductibles.
HDHPs are a good fit for healthier employees who don’t expect to need frequent medical care but want coverage for major medical events. The downside is that employees bear higher out-of-pocket costs upfront, which could be a burden in case of unexpected medical expenses.
Regardless of which insurance provider you go with, there are certain metrics you should use to evaluate every plan offering. Here are four of the most important.
Flexibility refers to network coverage and care options. In general, flexibility is a luxury that is paid for by increased premiums.
Small businesses will need to evaluate their workforce to determine if their employees have particular needs or circumstances that necessitate increased flexibility. One example might be a workforce that travels frequently.
The cost of premiums is always a major consideration. A low premium generally means lower-tier benefits and higher out-of-pocket costs, and the inverse is also true. Small businesses need to strike a balance between providing valuable benefits and managing their budgets.
If up-front cost is the most crucial factor, low-premium options like HDHPs are a strong option. For companies with higher-paid employees or needing more generous benefits, absorbing the higher premiums of an HMO or even PPO can be beneficial in the long run.
Employees' age, health, and family status play a significant role in determining the best plan type.
Many health insurance providers now offer added value through wellness programs, telehealth options, and preventative care services.
Small businesses that want to attract top talent and promote employee well-being should consider plans with comprehensive wellness programs. Offering perks like telehealth and fitness incentives can boost morale and productivity, making these features worthwhile even if they come with slightly higher premiums.
There is no one-size-fits-all best health insurance, especially for small businesses and their highly diverse needs. As a broker, you’ll provide your clients with the best service by being aware of the many types of health plans, their benefits, and, most importantly, how to access them at affordable rates.
BBSI can help. Our referral partners have access to a national network of small business health plans at rates usually reserved for large corporations, allowing you to offer your clients plan options at rates they couldn’t get on their own. This will help your clients attract better talent and keep their employees happier and more productive.
Interested in learning more about becoming a BBSI referral partner? Contact your local representative today.