Finding Health Insurance Baton Rouge Business Owners Can Rely On
It’s difficult to find healthy insurance Baton Rouge business owners can rely on. As owners, you know the importance of keeping your company and employees protected. Health insurance is the safety net that comes in handy when the unexpected happens and an extra boost of morale for employees to know that their employers have their backs. Health insurance is the link that solidifies the employer-employee dynamic and one of the stepping stones to create a mutually beneficial work relationship. While it may be beneficial to your company, that doesn’t mean it is easy. Small businesses, in particular, have a hard time finding affordable and comprehensive health insurance options. So how do you find the health insurance Baton Rouge business owners can rely on?
Benefits of Providing Employee Health Insurance Baton Rouge
It’s understable that the cost of providing health insurance, whether your business is big or small, for employees is quite the undertaking. Businesses have many considerations when it comes to cost and profit. Business owners are faced with the arduous task of balancing both for the sake of a successful company and employee sustainability. While some businesses may not be federally required to offer health insurance, there are some benefits to taking it on anyway. So before we take a look at the best health insurance Baton Rouge businesses could ever want, why don’t we assess some of the perks. Below, here are a few pros that come with providing your employees with health insurance:
Cost! Cost! Cost! Everyone is concerned with that bottom dollar. Running a business is often financially draining even without the added cost of health insurance, but imagine how your employees feel. The costs of individual health care plans can be staggering and people end up paying more for less coverage. Often, when a business purchases a group policy is more cost-effective than having employees seek out their own individual or family plans. By providing health insurance to your employees, businesses can present employees with an affordable option that is more convenient and accessible, while also possibly providing a more extensive coverage.
The Benefit of Benefits
Growth is often on the backburner of every business, but it is still on the stove. Thoughts of expansion and therefore, increasing employment, have crossed every small business owner’s mind. Well, there’s a benefit for offering health care. A decent health insurance package can make your business more attractive to the potential employee. When faced with a choice between you and your competitors, your business stands a chance when it offers better coverage. Here’s a great article about the perks of offering your employees the best and most diverse package of benefits to make their job search and your hiring process easier. For current employees, a nice health insurance package increases employee morale in the company they work for. Health insurance is that supporting hand that your employees can rely on. Here are a few different types of health insurance Baton Rouge businesses should look into:
- Group insurance – The most common small business health insurance option, group insurance, offers coverage at a reduced cost and requires a 70% participation from members of the business. If you want to learn more about group insurance, here’s a comprehensive guide about what this plan might be able to do for your business.
- Self-funded Insurance – Typically, an employer will set aside funds to pay for a self-funded insurance policy. One of the benefits of this kind of plan is the adaptability. A self-funded plan can be customized to fit the specific needs of your business. This option is great if you’re considering outsourcing your human resources to a third-party service provider, like Canal HR, because it requires much management in processing claims and calculating taxes.
- Health Reimbursement Arrangement – An HRA is a policy where employers reimburse their employees for their individual premiums and possible medical expenses on a pre-tax basis. This option is great because employers don’t have to pay payroll tax on these funds and employees don’t have to claim their reimbursements as income on their taxes.
Risky Business: Not Having Employee Health Insurance
Without a full human resources department to aid in navigating the uncertain waters of health insurance, small business owners may find it intimidating and be weary of the financial strain that employee health benefits puts on business owners. However, foregoing employee healthcare completely isn’t the best plan of action either. Noncompliance penalties is a huge risk associated with not providing health insurance for employees. Let’s discuss further below.
Government regulations tightened the hold on requiring employers to have medical coverage for its employees with the “Employer Mandate” in the Affordable Care Act policy. The ACA has clear penalties for certain businesses that fail to offer health insurance to their full-time employees. If your business has 50 or more employees, you run the risk of high noncompliance fees for not providing the healthcare option for your employees. Also, this is not a guessing game, where you have to wait until they send you the bill. Employers are charged $3,860 per employee per year. If you have the minimum of 50 employees, your fees will add up to just under $200,000. If you’re outweighing the costs of providing employee health insurance or not, consider that hefty noncompliance charge and think about if your business can take the hit.
While health insurance is only required for companies that have over 50 employees, the federal government found a way to make health insurance more attractive to small business owners. The Small Business Health Care Tax Credit provides government relief to offset some of the costs of employee health care coverage. Small business owners can receive a credit for 50% of employer-paid premiums. There are a few qualifications the company has to meet before it is considered eligible for the credit, however.
The Health Insurance Baton Rouge Business Owners Can Rely On: Canal HR
Canal HR can provide the health insurance Baton Rouge business owners can rely on. A professional employer organization, Canal HR, offers a wide range of human resources services fit for any business. Based on your needs, Canal HR will create a comprehensive plan to accomplish your business goals. No matter the size of the job, Canal HR is a vital contributing partner in your business. If you need a knowledgeable team to guide you through acquiring health insurance for your employees, process payroll, provide a variety of necessary training, and a host of other human resources administrative assistance, Canal HR is the call you should make today!