Health Insurance for Small Businesses

July 24, 2024 | Tags: Employee Benefits Insurance Education

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As a small business owner, you have a lot of important decisions to make. One of those might be exploring the option of providing healthcare benefits to your employees. 

Whether you’re just starting to research health insurance options or ready to get a quote, Medical Mutual can help. 

Why Should You Provide Healthcare Benefits?

There are many advantages to providing employee with health insurance as a business owner: 

• Retain quality employees – In today’s job market, offering competitive choices has become essential for recruiting and retaining top talent. According to a 2023 Mercer study, 64% of employers plan to adjust their wellness offerings to attract and retain employees. 
• Keep your employees healthy and productive – Providing access to healthcare benefits can ensure your team remains healthy and happy, and in return, produces high-quality work. 
• Enjoy tax benefits – Just like the wages and bonuses you pay your staff, certain employee benefits are tax deductible. 

Not sure what plan option is right for you? Use the information below and chat to your broker. 

Funding Types

When it comes to health insurance plans, there are two different funding types: 

• Fully insured
• Self-insured

Either of these funding options could work for you and your small business, depending on your comfort level with risk and the premium amount you want to pay. 

Let’s compare these two types:  

Fully Insured

• The employer pays a premium to the insurance carrier, who assumes the financial risk.  
• Premium rates are fixed for a full year, based on the number of employees enrolled per month. 
• Monthly premium-only changes during the year if the number of enrolled employees changes. 
• The insurance carrier collects premiums and pays healthcare claims based on the policy you purchase. 
• The enrolled employees and covered dependents pay deductible amounts and/or copayments for covered services.  

Self-Insured

• The employer assumes the financial risk for providing healthcare benefits to its employees and pays the insurance carrier an administrative fee for processing the claims. 
• The employer pays claims as they’re incurred instead of paying the insurance carrier a fixed premium. 
• The two main costs are fixed (such as administration costs and stop-loss premiums) and variable (based on how often the health plan is used). 
• To limit risk, employers can use stop-loss insurance, which reimburses the employer of claims that exceed a predetermined level. Stop-loss can cover: 
  1. Claims that significantly exceed the expected level for the group 
  2. Catastrophic claims

Plan Types

When looking at plan types, there are several options to consider. Popular ones include:

• Preferred Provider Organization (PPO)
• Health Maintenance Organization (HMO)
• Point-of-Service (POS)

Each plan has its advantages, and one may work better than another for you, your employees and your small business. Learn more about these different types of plans and contact a broker to determine which plan is the best option.

What Medical Mutual Can Offer You

Medical Mutual is here to help. Below are the options we can offer to benefit your small business. 

Funding Types Offered by Medical Mutual

Medical Mutual offers a variety of health plan options to meet your specific needs, including fully insured and self-insured plan options.  

Our Affordable Care Act (ACA) Small Group plans offer a variety of plan options with competitive rates. Our self-insured options, Balanced Solutions and COSE Benefit Plan provide alternatives to traditional plans. 

View Our Plan Options

Your Next Steps

Already have a trusted broker? Call them to discuss your options. If you don’t have a broker yet, we can help you find a reputable one through our broker network. Call 1-440-878-5930 or request a group quote to get started today.