Lock in Better Health Insurance Rates for Your Clients

Health insurance is a must for companies that want to remain competitive in the hiring market. It’s not only the most important non-salary job benefit for potential employees but also a federal requirement for businesses with more than 50 employees.

However, locking in affordable health insurance rates is no simple task for small and medium-sized business owners. Each company has unique needs, regulatory environments, and budgets that must be respected.

As a broker or trusted advisor, your clients will rely on you to find the highest quality and most affordable healthcare plans available year after year. In this guide, we’ll cover:

• Why each SMB must prioritize healthcare to succeed.
• How to secure the best plans and rates for each of your clients.
• How PEOs can simplify the process of finding the best health insurance rates.

First, why is it so important that all of your SMB clients make healthcare a priority?

Why Affordable Health Insurance Rates Should be a Priority for Small Businesses

For small businesses, providing competitive health insurance is an absolute necessity. Here are three reasons why:

Attracting Top Talent

Health insurance is the most sought-after employee benefit. That’s true in all industries, but if you’ve got clients who operate in especially talent-driven industries with a lot of hiring competition, they need to be extra certain they’re getting the best possible health insurance rates.

SMBs, who can’t always compete in salary, can make up ground in the hiring race by offering the most competitive and well-rounded health insurance plans. However, they can only do so if the price is right. Without affordable health insurance rates, SMBs risk losing out on top talent to larger corporations that can offer more comprehensive packages at a higher price.

Enhancing Employee Productivity

Another strong reason to prioritize great health insurance is keeping current employees happy. When employees have access to comprehensive packages at affordable rates, they’re more likely to use them. That means more preventative care, reducing absenteeism and the severity of illness.

Furthermore, when employees are satisfied with their healthcare, they’re less distracted and stressed at work. Earning employee goodwill like this means keeping the best employees for longer, even in competitive situations.

Financial Incentives

Finally, financial incentives and tax benefits are available to SMBs with healthcare coverage. 

For example, companies with fewer than 25 employees may qualify for the Small Business Health Care Tax Credit, covering up to 50% of premiums paid. Employer contributions toward employee health insurance are also tax-deductible, further reducing the burden of providing coverage.

Ultimately, SMBs that are serious about attracting the best employees, keeping them happy, and enjoying financial benefits should take a serious approach to finding the best health insurance rates.

Strategies for Finding the Best Health Insurance Rates for Your Clients

It can be challenging to sift through the hundreds of available plan options each year and find the right one for each of your clients. Here’s a few tips to make it easier:

Ask the Right Questions

As an advisor, the most important thing you can do is start by deepening your understanding of your clients and their unique needs. Consider putting together a template and having each of your clients fill it out to better understand their circumstances. 

You’ll need information like:

• Employee demographics like average age, family size, and specific health needs.
• Budget, including how much they’re willing to contribute towards premiums and information that will help you determine their eligibility for tax benefits.
• Additional desired benefits, such as dental, vision, or wellness programs that will affect the final premium.

Once you know exactly what your clients are looking for, you’ll have the foundation you need to start the search.

Become a Healthcare Expert

When you’re sifting through the wide options available, it will help tremendously to have a solid grasp of the terms and features of most modern health plans. Each health plan is unique, but they all feature similar thresholds and structures to help you narrow down options quickly.

For example, many plans today feature deductibles and out-of-pocket maximums. However, most high-end plans have no deductible, while cheaper plans will have a much larger out-of-pocket limit. Understanding distinctions like this can cut down the field of potential plans very quickly: 

• Try searching for plans with 0 or very low deductibles for your clients with more to spend on premiums. These plans are generally very feature-rich and include low copays per visit and service.
• For clients prioritizing low premiums, plans with high deductibles and out-of-pocket maximums may meet their needs. However, be wary, as these plans have far fewer added benefits and high up-front costs.

The more you know about the subject of healthcare, the better equipped you’ll be to help your clients find the ideal health insurance rates.

Consider Enlisting the Help of a PEO

Partnering with a PEO offers a distinct advantage regarding health insurance rates. 

*PEOs can offer negotiating power with insurance providers, giving you access to rates and plans that you may not be aware of.

However, lower cost is not the only benefit your SMB clients can enjoy if they choose to work with a PEO.

How PEOs Streamline Health Insurance and Secure the Best Rates

*As we mentioned earlier, PEOs provide a powerful solution for small businesses seeking affordable health insurance rates. That means:

• Attracting better talent with high-end plans usually reserved for large corporations.
• Better access to auxiliary benefits like wellness plans, dental, and vision coverage, also at affordable rates.

However, these aren’t the only reasons SMBs should consider partnering with PEOs.

PEOs like BBSI Can Reduce the Administrative Burden of Healthcare

Your small business clients don’t just face the burden of finding the best possible health insurance; they also spend time and manpower administering it. 

PEOs handle a significant portion of the administrative tasks associated with employee benefits. This includes handling enrollment periods and overseeing keeping track of plan changes, allowing small business owners to focus on growing their company rather than navigating the complexities of health insurance.

Ensuring Small Businesses Stay Compliant with Healthcare Regulations

One final benefit your SMB clients can see when they choose to work with a PEO is the peace of mind that comes with having a compliance expert in charge of their healthcare.

PEOs specialize in managing complex administrative tasks while ensuring compliance every step of the way. That includes meeting all legal requirements on their end and providing expert advice when needed on healthcare (among many other subjects).

For example, PEOs can help support your SMB clients stay compliant with the Affordable Care Act (ACA), accurately reporting information to the IRS and continuously monitoring the regulatory landscape for sudden changes.

Beyond simple cost savings, these benefits can simplify your clients’ health insurance and turn it into a source of strength.

Becoming a BBSI Referral Partner is the Easiest Way to Get Access to the Best Health Insurance Rates

Health insurance is critical for every business, particularly SMBs, to remain competitive in today’s hiring market. It’s also a major motivator for existing employees, reducing absenteeism and leading to a happier, more cohesive workforce. Finding the best possible health insurance rates is difficult, but with the information we’ve shared today, you’ll have a solid foundation in the marketplace.

If you want to take your clients’ health insurance to the next level, consider becoming a BBSI referral partner. When you partner with us, you can offer your clients immediate access to high-end insurance plans at affordable rates, which are plans usually reserved for the largest corporations. You’ll also be able to offer the simplicity and peace of mind that comes with entrusting healthcare administration to an experienced expert.

Become a partner today. Contact your local BBSI representative.