Small Business Health Care Concerns
A Home Business Article Contributed by Elizabeth Fox-Wise
Health Care Insurance Has Increased to a Point That Many Small Business Owners Can No Longer Afford It.
Many small business owners have had to make the difficult decision of not carrying health care insurance and not offering health care programs to their employees. Health Care insurance premiums have had double digit increases every year since 2000. With predictions of a ten percent increase in health care insurance costs during the year 2005, we will have seen a record five consecutive years of increases in the double digits for health care.
Most small business does not have a large enough profit margin to absorb increases of such magnitude. Therefore, many small business owners have faced the 2000s with a very difficult decision to make.
Not Offering Health Care Programs Hurts Small Business in Many Ways
Not only is the small business owner running the risk for himself and his family, by not being able to secure a health care insurance plan, but he is also putting his business at risk of not being able to attract and retain good employees.
Because the cost of health care is so high in America, the number one consideration when choosing a job is often the quality of the health care insurance being offered. If small business can not offer health care insurance to their employees, they are not competitive in the market place and cannot attract and retain the most qualified candidates in their industry.
Alternatives to Traditional Health Care Insurance for Small Business
Besides choosing to carry no health care plan at all, there are some other options for the small business owner to consider.
Sometimes, by changing the provider of the health care insurance or changing the type of insurance plan that you are carrying, it is possible to get costs down enough to make it affordable again. Network provider health care programs are often more economical than traditional insurance plans which let you go to the Doctor of your choice. They also usually offer more affordable co-pay amounts as long as you go to approved doctors within the network.
Other alternatives for changing your health care plan could include raising your deductible or your co-pay as a means of lowering your health care premiums.
Another alternative might be looking into a Health Savings Account (HSA) which have proven to be a good solution for some small business. An HSA combines a high deductible health care insurance plan with an individual savings account intended to cover health care expenses. This type of a health care solution gives the individual more control over the health care spending and any money not needed for health care can be used as a retirement account.
With health care insurance rates expected to rise drastically once again in 2005, more and more small business owners will be seeking health care solutions. The cost of health care in America is a problem owned by all of us which must be addressed before we truly have become a nation with all kinds of medical advancements and technologies that none of the citizens can afford.
