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3 Reasons Small Businesses Need Group Health Insurance

Small businesses are the heart of America, and being able to offer lucrative benefits means they can hire the best talent in the industry. Small business health insurance can be expensive if you don’t do your research, and many small business owners aren’t aware of their group health insurance options.

Before you renew your next policy, review this quick guide to small business group health insurance, and how you and your employees can save money with the right plan.

3 Reasons Your Small Business Needs Group Health Insurance

Group health insurance isn’t just a benefit for you

r employees – it offers practical advantages that support your business goals.

1. Employee Retention

It’s expensive to hire new employees, and that investment is even more critical when you consider that nearly 25% of people aren’t likely to stay in their current position for more than five years. However, nearly a quarter of those people indicated that a better benefits package could encourage them to stay with the company

Investing in your employees is critical to long-term, sustainable growth. Group health insurance plans give your employees more options and access to better care over individual plans.

2. Financial Benefits

There are two financial benefits to investing in group health insurance. The first is that you can generally offer health insurance as part of a salary package. This means you might be able to offer a lower salary. The second is that group plans might be less expensive than offering HSAs or FSAs to cover individual premiums for your employees.

If you think your business is “too small” to benefit from group insurance plans, think again – we offer group health insurance for businesses with as few as two employees.

3. Tax Advantages

Small business group insurance plans might offer tax advantages to your organization. The IRS gives businesses a write-off opportunity for disability, health, and life insurance policies. Enrolling in plans offered by the Small Business Health Options Program is another way to qualify for small business tax credits.

Your employees can also save on their taxes with group insurance

plans. Health insurance premiums are deducted before tax, so they lower your employees’ taxable income.

Tips for Finding and Saving on Small Business Group Health Insurance

Investing in small business health insurance can feel like a big commitment. There are, however, ways to lower your costs and make the process a little easier.

Follow these practical tips for finding group health insurance and saving on premiums:

  1. Survey your employees: Your employees know what they need in coverage options, and those vary depending on factors like dependents and financial situations. Ask for input.

  2. Shop for multiple quotes: As with any insurance coverage, you want to get multiple quotes so you can compare costs and policy options. Bonus points if you can offer more than one plan.

  3. Solicit professional help: You can absolutely research multiple companies and policy options on your own. A professional, though, knows how to find the most competitive premiums.

Finding group insurance plans does take some time – you want to review each quote and policy carefully so you understand the costs to both you and your employees.

Get Started with a Small Business Health Insurance Quote

Even if you think there’s no way your business could benefit from group health insurance, consider talking with an insurance professional. Some options can save you money, lower your tax bill, and increase employee morale. Looking for a small business group health insurance? HRBC Insurance can connect you with the best quotes for your business needs.

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