Finding Small Business Health Insurance

One of the biggest costs small business owners have to deal with is employee health insurance. It’s the reason many small businesses don’t have health insurance.  Looking for small business health insurance can be a “sticker shock” kind of thing – the costs may be way higher than you expected.

The Benefits – and Cost – of Small Business Health Insurance. Having health insurance for your employees can make you more competitive, but it’s a pretty high price to pay.  And fewer small businesses are willing to pay the cost.  BusinessWeek reports that the number of small businesses offering health insurance dropped from 68% in 2000 to 62% in 2008, and fewet than half of micro-businesses (those with only a few employees) offer health insurance.

Where to Find Health Insurance. But there are some places you can find health insurance for yourself and your employees.

Health Insurance by State. Insurers work on a state-level basis.  Some providers offer services in some states. Even if someone tells you about a great health insurance plan, you will need to check to see if they have services in your area.  Search on [state name] and “insurance commission” to find information on insurance companies approved to operate in your state.  You may also be able to find more information on small business health insurance, in some states; Texas, for example, has a Small Employer Health Plan Rate Guide you might find helpful.

Online Referrers.  EHealthInsurance and SBHI.NET are online sites that take your information and provides quotes for several companies in your area.  You must give them an address and phone number, and you will get calls from insurance agents.

Trade and Professional Associations. Check with your business trade association or professional association. They may have group insurance available for purchase.

Local Resources. Contact local insurance agents. Most of them have a business health insurance plan they can sell you.  Also contact your local Chamber of Commerce; they may have a group plan available for local businesses.

Other Sources. I was surprised to find that some of the larger banks offer business health insurance.  Wells Fargo and Bank of America, for example, has business health insurance plans available.

Learn the options, including high-deductible insurance, to save money.  And get lots of information before you make a decision.

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