It can be complicated to start a small-business group health insurance plan but not impossible. In fact, depending on the state you live in and the number of employees you have, you may be required to offer health insurance. It is critical to select a plan that best fits your small-business needs. Health insurance can be one of your bigger operating expenses. Follow this step-by-step guide to learn start a small-business group health insurance plan.
Instructions
Insurance for Your Small Business
1. Talk to your employees. If you are just starting a group health insurance plan or considering a new provider, talk to your employees. Try to determine what kind of coverage they expect and what they are willing to contribute. A critical issue is how many dependents each employee may want to cover as well. Your group health insurance plan costs will largely be based on the number of people you want to cover and their general health.
2. Determine your needs. What kind of coverage do you need? Depending on the age and health of your employees this can vary greatly. If you have a younger population in a low-risk group, a small discount plan may suffice. If you have an older population or engage employees in dangerous work like construction, you may need a more comprehensive plan.
3. Review websites that identify and rank group health insurance plans. Health insurance is a high-profile industry and you can use that to your advantage. Many states and non-profit agencies have established websites to help small businesses start group health insurance plans. They may rank insurance carriers by cost and performance as well as provide a search engine that can help match plans to your basic needs.
4. Get three or more bids. Once you have your research done, create a request for proposal (RFP) that outlines exactly what you want in a group health insurance plan. Send the RFP to any insurance carriers that seem to offer the services you desire at a price you're willing to pay.
5. Select the best fit. Once the bids come back, set up meetings with the top three bids to determine who will serve you best as you start a group health insurance plan for your small business. In some cases you may discuss the options with your employees to empower them in the decision-making process. Make sure you include contract stipulations for performance and review key points on a semi-annual basis with your selected provider of your small-business group health insurance.
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