How to: Buy Health Insurance for Your Small Business

Posted in Health Insurance , Small Business Health Insurance

October 4th, 2009

If you own a small business, you may be wondering whether or not to buy health insurance for your employees. It is expensive, and complicated. Purchasing health insurance – unlike, say, life insurance or auto insurance – is very complicated, and laws concerning the transaction will vary from state to state.

Workmen’s Comp

Small businesses, like any sized business, must participate in workmen’s compensation programs, more commonly referred to as “workmen’s comp.” This covers a worker’s injuries while on the job. Almost all states require that businesses which employ one person – other than the boss – participate in workmen’s comp. As for health insurance, it is generally optional, and something that a boss will want to offer his or her workers in order to be more competitive in the workforce, and retain employee loyalty.

Checking Local Laws

Since the laws concerning small businesses and health insurance vary so much from state to state, it’s a good idea to seek out other small business owners and determine how they’ve come to offer their employees this highly valued benefit. You may find that your business qualifies to participate in what’s known as a “purchasing association.” Purchasing associations allow small businesses to join together as a single, much larger professional entity, and thus bargain with insurance companies from a stronger footing. The more employees are covered, the more muscle a business owner will have when it comes to getting quality health care.

Health insurance rates and health care reform is on everyone’s mind these days, and major changes in the way Americans get their health care could be coming down the road soon. These changes could affect us all, but most specifically small business owners. Staying informed about all the latest changes and debates could help small business owners prepare themselves.