How to Choose a Healthcare Plan
for Your Small Business

by Torre Nigro

Choosing a healthcare plan can seem complicated, but if you follow a few guidelines, you can make the experience much easier and end up with a plan that not only fits into your business model, but offers your employees benefits that are relevant, easy to use and affordable.

The first thing you want to consider is finding a carrier that offers a wide-range of products. The plan that works for the photographer or glass cutter down the street may not work for you and your employees. Look for HMO and PPO options, a wide range of deductibles and a large network of physicians, roviders and hospitals.

There are also options that companies can offer to make the management of your benefits program easier for you like online enrollment for groups and employees. This may seem obvious, but it is not offered by all insurance carriers and will make a huge difference in your administrative duties.

You can save time and money if the company you choose can offer you multiple products for all your benefits needs. Do they have dental, health, life and disability? If the answer is yes,
you will be able to add additional benefits as your company grows without switching carriers or resorting to a complicated piece-meal approach.

Don’t overlook the out-of-area options offered by some insurers. You might not have employees
in Chicago or Los Angeles now, but with our world becoming increasingly more global, it is possible you will grow to include people who don’t live in the Kansas City area. When that growth occurs, you or your employees will probably need to travel. A plan that offers coverage no matter where you are is invaluable. Does the carrier offer an Employee Assistance Program (EAP) as part of the benefit package? Studies show that happy and healthy employees
are much more productive. According to a 2004 Rand Corporation report, “The Societal Promise
of Improving Care for Depression,” depression costs employers more than $51 billion per year in
absenteeism and lost productivity, not including high medical and pharmaceutical bills. In fact,
unscheduled time off costs small businesses $700 a day in profits. Resources such as EAPs help employees to identify issues before they become more serious problems, ultimately making for healthier, happier employees and more successful businesses.

Also consider providing your employees with additional defined dollars that they can spend on protected or ancillary products available in the marketplace. As a small business owner, you may not have the funds available to spend on offering employees a complete benefits package,
but critical illness policies and other limited benefits policies can offer peace of mind at reasonable costs.

Choosing the right insurer provider for your business and employees doesn’t have to be complicated. Do your research, compare products and make your decision based on the best options for where your company is right now, but don’t forget to factor in where you want to be in five years. If you find your options confusing, remember there are agents available who can help you make sense of everything.

As a small business owner, your success depends on your ability to choose the right path for your company and employees.

Torre Nigro is Vice President, Small Group Sales and Consumer Market at Blue Cross and Blue Shield of Kansas City.
P     |     816.395.BLUE
E     |    torre.nigro@bcbskc.com
Return to Ingram's December 2008