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6 Things to Consider When it Comes to Employee Healthcare

Health InsuranceAs we approach the first anniversary of the Affordable Healthcare Act’s implementation, more and more small business owners are looking at their options for themselves and their employees. Here in New Hampshire, consumers will have more choices and with more choices often comes indecision. If you are looking at healthcare options for your employees and feel confused or indecisive, read on.

  • Healthcare costs can be a significant budget line item especially if you haven’t covered healthcare costs in the past. You wouldn’t be the first small business owner to exclaim, “HOW much is it going to cost me?” While cost is certainly important, start with a broader view and look at it from a philosophical standpoint: do you believe that you have a responsibility to your employees to provide health insurance? What part do you think you should play in your employees’ health?
  • If you’re not sure what your role should be in providing health insurance, consider these statistics: A 2012 monster.com survey revealed that prospective employees consider healthcare as the most important benefit a potential employer could offer. More recently, MetLife’s 2014 annual benefits summary reports that benefits are an important reason that 50% of employees stay at a job.
  • If you’ve decided that you want to pay for some part of your employees’ healthcare costs, start by contacting an experienced benefits agent. The ACA healthcare environment is confusing; rather than trying to navigate alone and potentially making a costly mistake find someone who has been in the market for years and stays current in the market. These agents are paid through fees from the insurance companies, not by you. They are knowledgeable about options as well as what your competitors are offering.
  • Healthcare coverage can vary by employee class, allowing you to provide a higher level benefit to owners or based upon position. For example, one client is offering three levels; owner, professional staff, and hourly staff.
  • Healthcare is costly and if you haven’t been offering any coverage, adding the cost can be overwhelming. Look at the cost as a percentage of revenue, in addition to actual dollars. Costs relative to your revenue can be enlightening (both good and bad!).
  • If you choose to offer healthcare, education is key for everyone involved. Your employees are probably confused about the new healthcare market and will soak up any information available to them. Rely on your agent to provide this (discuss their employee education plan up front).

More and more small business owners are looking at healthcare options not only for their own family but also for their employees. If you are one of those entrepreneurs, start the decision making process by considering your values – they will never steer you wrong. If you decide to look into your options, save yourself from confusion and overwhelm and get help from an expert.

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Helen Dutton, A Vision of Your Own, has provided business and personal coaching for small business owners since 2000, providing online and face to face coaching for entrepreneurs, small business owners, start-up businesses as well as established businesses across the country. Clients come from New Hampshire, her home state, but she has also acted as a mentor to business owners in Atlanta, Chicago, Los Angeles, the Denver area, and closer to home in the Boston area. Helen helps her clients develop their small business ideas, create marketing plans, improve operation efficiency, build customer service systems, build management and leadership skills, and develop confidence as a business owner. Helen provides business tips and resources through her blog and her newsletter, where you can also find business templates to help your business prosper.