With small businesses employing the majority of the Texas workforce, the health benefits they offer are vitally important to thousands of Texas residents. So when evaluating which Texas health insurance plan is best for your employees, make sure you shop around. The large variety of plans and coverage options available can be difficult to navigate, but these choices mean that small businesses can tailor plans to best fit the needs of their employees.
When considering a health insurance plan for your small business, it’s important to note that rates are not governed solely by the benefits and coverage options of the plan itself. Instead, carriers calculate rates according to the following case characteristics:
Age of employees – Older employees can reasonably be expected to have more expensive and more frequent health-related claims; generally, the older your employees, the more your plan will cost.
Gender – Females typically incur higher medical costs than males at younger ages, while males incur higher costs in their later years. If your small business has a young, female workforce, or one that is older and predominately male, expect to pay higher premiums.
Number of plan participants – As the amount of plan participants increases, the administrative cost per person decreases.
Industry – Certain factors, including hazardous working conditions, subject small businesses to higher costs. And even high employee turnover can result in a pricier plan due to higher administrative costs for the carrier.
Geographic area – Health care costs vary by region due to differences in cost of living, medical practices and the amount of medical competition in the area.
With the above factors affecting health insurance rates, premiums, deductibles and copayments will vary significantly from plan to plan. To ensure that you get the best plan at the best price for your small business, it’s smart to do extensive research when shopping for a Texas health insurance quote. The following factors should be helpful when considering coverage options:
Extent of coverage – Be sure you understand the full extent of each plan’s coverage options when comparing plans and rates so there’s no confusion as to the benefits your employees will and will not receive.
Premiums – Plans with higher deductibles and copayments will generally have lower premiums, but that means more out of pocket expenses for employees.
Financial Rating – When trusting your employees’ health to an insurance company, make sure it can fulfill the financial obligations required under the plan. You can learn a company’s financial rating and the frequency of consumer complaints filed against a company by calling the Texas Department of Insurance Consumer Help Line.
Cooperatives – Look into joining a cooperative. Cooperatives are groups of employers with similar health care needs who join together to negotiate discounted rates for shared plans.
For even more information on providing health coverage for your small business, visit the Texas Department of Insurance.