For many small and mid-sized business (SMB) owners, the inability to offer affordable group health insurance is one of the most frustrating HR challenges they’ll face. This is especially true when it comes to recruiting high-quality candidates for open positions. SMBs can usually compete with larger organizations on starting salaries and company culture. Unfortunately, they often struggle to offer affordable health insurance for small business because they lack bargaining power.
Axcet HR Solutions, a certified professional employer organization (PEO) in Kansas City, has a team of experienced employee benefits consultants who help smaller employers obtain affordable group health insurance. Through our co-employment model, we bring a larger pool of potential insureds to negotiations with health insurance carriers. That means companies partnering with Axcet have access to Fortune-500-level benefits despite their size.
At Axcet, finding affordable health insurance for small business clients is what we do best. In this article, we’ll discuss how we make that happen and how you can get started with new, affordable benefits options today.
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At Axcet, our benefits professionals research a range of employee health plan options to find the one that best suits your company’s needs. We present clients with multiple plans and explain the details of each option.
If none of the presented plans meet your needs, we go back to the insurance providers to gather additional proposals. Our search for affordable health insurance for small business clients doesn’t stop until you’re satisfied and the options are within your budget.
Once you select your health insurance plan, our team handles all of the administrative tasks moving forward, including:
While Axcet takes the lead in sourcing affordable health insurance for small business clients, you remain in full control of the final decision-making process. SMBs retain complete authority over their choice of affordable group health insurance, while we handle the heavy lifting.
One of the biggest values we offer is our ability to negotiate affordable employee benefits and present well-vetted options that save you time and effort.
Employees are generally familiar with the benefits of choosing an in-network provider, understanding that visiting out-of-network doctors often results in higher deductibles or co-insurance costs. Recent research within the employee benefits industry shows that most employees prefer affordable group health insurance plans with lower premiums and out-of-network costs, even if it means having a more limited choice of doctors.
With affordable health insurance for small business plans, employees can often see specialists without needing a referral as long as they remain within the network. This arrangement not only provides convenience for employees but also offers significant cost savings for employers. Companies don’t need to pay for access to larger networks of providers that employees are unlikely to use, helping to keep overall premiums and healthcare costs more manageable.
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When selecting affordable health insurance for small business employees, SMBs have a unique advantage. With a smaller group to cover, the process can often be more straightforward. One important factor to consider is the demographic makeup of your workforce, particularly the average age and general health of your employees.
If your team consists primarily of younger, healthier employees, it may be beneficial to choose an insurance plan that offers a lower monthly premium in exchange for a higher deductible.
On the other hand, if your workforce is older or tends to require more frequent healthcare services, a plan with a higher monthly premium but lower out-of-pocket costs might be the better fit.
Tailoring your health insurance options to the needs of your employees ensures they have access to the care they need while helping your business manage costs effectively.
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Just as today’s worker expects online access to payroll and paid time off information, they also expect arranging and receiving affordable employee benefits to be as convenient as possible.
Look for insurance providers that offer such services as:
The Kaiser Family Foundation’s 2023 survey on health insurance costs revealed high average expenses for employers. This finding wasn’t surprising, as the average cost to provide coverage for a single employee was $8,435, while the median cost for family coverage was $23,968. For many small and mid-sized businesses, absorbing these costs is simply unrealistic.
At Axcet HR Solutions, our clients often tell us that covering the full cost of health insurance is not feasible. This is understandable, considering that health insurance premiums typically make up at least one-third of an SMB’s overall compensation package.
Fortunately, there are several strategies SMBs can implement to make affordable health insurance for small business more attainable.
One way to mitigate affordable health insurance for small business expenses is by offering Health Savings Accounts (HSAs). These accounts pair with high-deductible health plans, helping employees cover out-of-pocket healthcare costs on a tax-free basis. Since the IRS does not tax income used for healthcare expenses, employees can save money each time they use their HSA to cover medical bills.
HSAs also provide a long-term savings benefit since unused funds roll over from year to year and can even earn interest.
Providing a cost estimator tool gives employees the ability to compare healthcare providers and procedure costs before receiving services. This transparency allows them to choose the best doctors and services for their needs while managing their out-of-pocket expenses effectively.
Incorporating employee wellness programs as part of your affordable group health insurance offering can promote a proactive approach to health, reducing claims and improving overall employee well-being. Popular wellness perks include smoking cessation programs, weight loss initiatives, gym memberships, and mental health counseling.
By encouraging healthier lifestyles, SMBs can foster a more productive workforce and reduce healthcare-related costs in the long term.
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At Axcet, we take pride in our ability to source affordable health insurance for our small business clients. Benefits administration, including health insurance, is just one of many client services we offer here at Axcet HR.
We invite small and mid-sized business owners to request a consultation to learn more about the dozens of PEO services we offer under the umbrella of affordable health insurance for small business clients, human resources management assistance, payroll administration, and risk management.
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