Planning for Health Benefits: 3 Things Small Business Owners Need To Know

As you begin planning for health benefits this year, there are important things every small business and HR professional should know. First you have to determine how many employees you will offer the benefits to and how many of those will participate. This affects your budget and eligibility for a group insurance plan.

To save you from simple mistakes and bring in a successful new year for your business, consider these things:

Budget. Every business has a unique set of needs and knowing your budget will help you choose an appropriate plan. Group health plan and individual health reimbursements are just some of your options. In a group plan, monthly premiums are paid by both employer and employee, called a cost-sharing percentage or minimum contribution. On the other hand, health care allowances don’t have a minimum contribution amount. The employer reimburses employees for individual health insurance.

Health benefits program. Your plan of action has a substantial impact to you and your employees. You should have someone to manage health benefits internally.  If you don’t have a dedicated HR team member, consider an individual health insurance.

Health benefits goals. Set goals as you plan for health benefits and at the end of the year, evaluate your efforts and continue strategies that make the program a success.

Remember to discuss coverage options with your employees. While federal laws prevent you from asking information about an employee’s personal medical history, you can assess which kinds of benefits are important to them. This will be valuable to your decision-making.


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