For Small Businesses or the Self-Employed

Running a small business or self-employed

Health insurance is extremely important to most employees and can be a powerful benefit in recruiting and retaining the best workers. Cost and availability are key issues employers have to consider.

My business is small but growing. Can I offer my workers a group health plan?

It is possible. Your premium will be based on how many employees participate and their health status. You can negotiate directly with an insurance company or hire an insurance broker to identify a plan.

Insurance companies offer small and large group coverage. Comparison shop traditional insurance, Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) plans for coverage that suits you at a cost to it your business model.

I've priced group coverage and it's expensive. What are my other options?

A Health Savings Account (HSA) may be another type of health insurance you could offer your workers. The account works with a qualifying high-deductible health plan to provide coverage. The HSA is used to pay routine expenses, and the high-deductible plan is used to pay more signigicant expenses. The high-deductible plan can be through an HMO, PPO or traditional insurance.

The HSA is funded with pre-tax dollars to pay eligible health care expenses including insurance policy deductibles, copayments and out-of-pocket medical expenses. Employers can establish HSAs for their workers; individuals can set them up for themselves as well. Required coverage amounts, out-of-pocket expense limits and annual contribution limits may apply.

Employer and employee contributions, earned interest and amounts used to pay eligible expenses are not taxed. You may take an HSA with you when you leave your employer.

I've heard of small business alliances. How can they help?

A health care alliance is a cooperative of small businesses that band together to form a larger group in order to make coverage more affordable. Any employer group with fewer than 500 employees, and that meets the alliance's membership criteria (examples: being a member of a chamber of commerce or a member of a certain industry) can join. Employers who join such alliances may be entitled to certain tax benefits.

Most areas in Ohio have one or more small business alliances. To get a current list call the Department of Insurance Consumer Services at 1-800-686-1526 or go to our web site (www.ohioinsurance.gov).

Can you offer any other health insurance shopping tips for small business owners?

• Before purchasing any insurance, interview several licensed insurance agents who specialize in serving the health insurance needs of small businesses.
• Before selecting a health plan, consider an employee survey to ind out what kind of coverage is particularly important to them.
• Understand the factors that can affect the cost of your small group health premiums.
• Visit www.ohioinsurance.gov or call the Department's Consumer Services Division at 1-800-686-1526 to determine if an agent or company is licensed to do business in the state
• Call Consumer Services if you have any other insurance questions.