Starting a business and attracting employees is hard enough – now add benefits into the mix. Entrepreneurs typically have a tough time affording insurance, so they turn to group healthcare. It’s a good option, particularly when starting out.
When researching group insurance, think about what membership groups you may already be in. Unions, alumni associations, and various professional organizations such as the local chamber of commerce are the first places to look, according to various reports.
But it’s not getting any easier. Keep these survey findings in mind:
The average monthly premium for small-group health insurance last year was $426 for single coverage and $1,117 for family coverage. The smaller the business (number of employees in this case), the greater its health-care costs. Firms with 10 or fewer employees paid an average monthly premium of $446 for single coverage last year, compared with just $406 for firms with between 26 and 50 employees. Firms with between 11 and 25 employees paid an average of $419 per month for single coverage.
The survey results are based on responses from more than 477,000 businesses with 50 or less employees, although nearly three quarters of respondents had 10 employees or less.
One way to keep costs lower is by asking employees to share a portion of the premium burden. It may not go over well initially, but when employees see the bottom line it will likely become more easy to bear.