The Unsung Hero: Why Small Business Health Insurance is More Important Than Ever
- Jacob Hollingsworth Network Corporation
- Jul 25
- 5 min read
Time to Open up “SHOP”
In the ever-evolving landscape of healthcare, the spotlight often shines on large corporate plans or individual marketplace options. However, there's an unsung hero quietly providing immense value to millions: small group healthcare. For businesses with 1-50 full-time, or full-time equivalent employees. These plans are not just a benefit; they are a critical pillar of employee well-being, business stability, and economic growth.
Beyond a Perk: The Core Value Proposition
For small businesses, offering health insurance might seem like a daunting expense. This is simply due to the lack of understanding and knowledge that has been provided in the past about small business healthcare. Yet, the value it brings far outweighs the cost, extending beyond mere compliance or employee satisfaction.
Attracting and Retaining Top Talent
In today's competitive job market, comprehensive benefits packages are no longer just a "nice-to-have" – they're crucial. As the economy continues to move at the rapid speed it has recently with tumultuous, dangerous inflation, benefits can be your saving grace. Let’s say “Company A” offers a job opening for $25/hr, but does not offer essential benefits, but “Company B” is offering $24.50/hr, but with essential benefits such as medical, dental & vision, a study by US-Rx Care on Nov 5th, 2024, says that 72% of workers would take a slightly lower salary in exchange for comprehensive healthcare. The inclination is to agree with this sentiment as the value of health coverage could exceed the yearly wages earned providing a mass level of security for individuals and families at a more affordable cost than they would acquire through their own private means or through their marketplace.
Small businesses often compete with larger corporations for skilled employees. A robust small group healthcare plan can be the deciding factor for a prospective hire, signaling an employer's commitment to their team's health and security. For existing employees, it fosters loyalty, reduces turnover, and ensures valuable institutional knowledge remains within the company.
Boosting Employee Morale and Productivity
A healthy workforce is a productive workforce. When employees have access to quality healthcare, they are more likely to address health issues proactively, leading to fewer sick days, faster recovery times, and improved overall well-being. Knowing they are covered provides peace of mind, reducing stress and allowing employees to focus on their work rather than worrying about potential medical bills. This translates directly into higher morale and increased output.
A new nuance to this matter is having advice readily accessible to your employees. A feeling of security and improved chemistry commences knowing there is a place they can go for particular advice around their healthcare coverage from knowledgeable advisors of health insurance.
Financial Risks & Advantages for Both Employees & Employers
For employers, offering health insurance can also lead to tax advantages and reduce the risk of employees seeking public assistance due to lack of coverage, which indirectly impacts the community and overall economic stability. Especially businesses with fewer than 25 employees, they may qualify for a Small Business Tax Credit which can cover up to 50% of their premium costs, or 35% for non-profits according to CMS Guidelines. This also comes with direct, extensive reputability risks. Not very many people will want to work for a company that has a reputation of not caring for their associates. This can also impact your sales & revenue. Not very many people will want to buy from a business that has a poor reputation.
For individuals, an unexpected illness or injury can lead to financial ruin. Small group plans provide a crucial safety net, protecting employees from crippling medical debt.
Promoting Preventative Care and Wellness
Many small group plans emphasize preventative care, covering regular check-ups, screenings, and immunizations. This proactive approach helps identify and address potential health problems before they become severe and more costly. By encouraging wellness, businesses contribute to a healthier society and a more vibrant economy.
The Unique Advantages of Small Group Plans
While the general importance of health insurance is clear, small group plans offer specific benefits tailored to the needs of smaller organizations:
Group Buying Power: Even small groups can leverage collective bargaining power to secure more affordable rates and more comprehensive benefits than individuals can typically access on their own.
Simplified Enrollment: The enrollment process for small group plans is often streamlined, making it easier for businesses to administer and for employees to sign up.
Diverse Plan Options: Insurers offer a variety of plans within the small group market, allowing businesses to choose options that best fit their budget and their employees' needs. Also providing the most comprehensive network options pertaining to your region. Meaning network providers could all fall within a welcoming distance from your business’ primary & secondary residencies. This allows for less stressful commuting for employees who want to take advantage of their time and receive the coverage they need without longer commutes.
Guaranteed Issue: Under the Affordable Care Act (ACA), small group plans are "guaranteed issue," meaning insurers cannot deny coverage or charge higher premiums based on employees' health status. This provides critical security for all members of the group.
HOW TO ENROLL
Unlike Individual healthcare plans, Small Group Health Plans, or The Small Business Health Options Program (SHOP) Plans do not require you to wait until Open Enrollment Period or Annual Enrollment Periods to set up SHOP. So when you’re ready, it’s best to absolve the risks by not having coverage as soon as possible. You can apply for a plan today and receive an immediate turnaround of protection without the lapse period.
You will be able to apply by consulting an Insurance Broker who is SHOP Certified, or contacting an insurer directly and asking about SHOP/Small Business Health Plans and if they offer them. It is always in your best interest to consult an Insurance broker prior to applying for SHOP Coverage.
The Future of Small Group Healthcare
As the economy continues to shift, with more individuals seeking opportunities within smaller, agile businesses, the role of small group healthcare will only grow in importance. It's not just a benefit; it's an investment in human capital, a driver of economic resilience, and a testament to the idea that a thriving business is built on a foundation of healthy, supported employees. For small business owners, understanding and embracing the value of small group healthcare is not just good business practice – it's essential for long-term success.
Reach out to us today to get started on the best possible solution for you and your business. We’re here to educate. Not sell.
If this matter is pressing you today, consult an Insurance Broker today. "Why put off for tomorrow what you can do today."
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