One of the best ways to show your employees that you care about their health and well-being is by providing health insurance. To make sure that you get the right health plan, there are a number of factors to consider when looking for health insurance for small business owners and employees.

Considerations When Picking Health Insurance for Small Business Owners


The cost of different plans can vary widely. Spend a little time speaking with an experienced benefits broker about the costs of various group health insurance plans so you can get an understanding of the costs associated with the different plans.

However, do not let price be your only factor when choosing a plan. This may leave you with a plan that doesn’t have good or comprehensive coverage.

Below are some of the most important factors in controlling your cost:

  • Deductible – The higher the deductible the lower the premium. Look for the balance of affordability and coverage.
  • Carrier – Finding the best insurance carrier for the features you want in your health insurance plan
  • Prescriptions –The more types of specialized medications you cover the more expensive.
  • Hospitalization – The more coverage you provide the higher the cost
  • Copay – The share of costs that an employee would have to shoulder. The higher the copay the lower the premium. Some require the employee to pay as little as 10 percent while others may require a much higher percentage of the costs.

The ideal health insurance plan strike a good balance between the costs that you can cover with your budget and the part employees would pay, so that it’s fair for both sides.

Different Type of Health Care Plans

Two of the most well know and popular plans are HMO’s and PPO’s.  With Health Maintenance Organizations (HMO’s) you select from a list of approved doctors. Preferred Provider Organizations (PPO’s) all you to choose your own doctor but you pay more for the flexibility.

There are also POS (Point of Service) and High Deductible Plans.

Talk to a Local Benefits / Group Insurance Broker:

As mentioned above one of the best things you can do is to contact a local benefits broker that provides group health insurance plans. They can help you navigate this sometimes daunting task, go over your options and provide you with quotes and advice.


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