3 Misconceptions about Small Business Healthcare

Here’s a riddle: Everyone needs it but employers are often too scared to talk about it. What is it? Healthcare. 

With health care costs seemingly on the rise incessantly, figuring out healthcare as a small business owner can be daunting. 

But did you know that the majority of workers prefer a job with benefits over one that pays more and has no benefits? According to the AICPA, this is true. 

Fortunately, exploring healthcare benefit options for your workers does not have to be scary. Below are some common myths about healthcare and some solutions that should help you to be a little more certain about your decisions.

1. I don’t need to offer benefits because my business is so small.

You may think it is not necessary to offer benefits if you only have a handful of staff members. But an employer of even just two employees (which can be the owner and a full-time employee) can offer employee benefits. You can get help from an agent or broker to pursue small business healthcare options.

2. I cannot afford to pay benefits for employees.

We get it. Budgets are tight and it is easy to eliminate healthcare benefits to help with the problem. But there are actually options that don’t cost a lot. You can put $100 towards a plan and it will show employees that you care while not tapping into too much of limited resources. Look into Qualified Small Employer Health Reimbursement Arrangements (QSEHRA), an employer-sponsored reimbursement program that offers payroll-tax-free benefits to employees. This makes this benefit for your employee a tax-deductible expense for you. 

3. Figuring out benefits is too complicated or hard to understand.

If you can define what a deductible is or coinsurance, co-pay and out-of-pocket minimum/maximum, then you are actually ahead of the game. The majority of Americans cannot. If you can’t, don’t feel bad. Understanding all of the healthcare jargon can be hard to follow. 

Consider working with a healthcare broker, which is a cost effective option. A broker can help you to make wise decisions in the area of employee benefits and they can act as an advocate between employers and insurance carriers.