Small business owners are looking for ways to save money on healthcare. Shouldering a huge portion of the burden when it comes to insurance premiums is not a joke, especially if your business is small. However, it is part of your obligation to your staff; therefore, you need to provide them with good health insurance they can highly benefit from.
Indeed, there are many health insurance plans available today, and one that is gaining so much popularity these days is self-funded insurance. A lot of business owners are being drawn to self-funding because it can help down save more on costs. Moreover, self-funding offers customize plans. Is it right for a small business, though?
Is Self-Funding Insurance Right for Your Small Business?
Determine whether self-funded insurance is right for your business or not depends on several factors. You need to know how much risk you’re willing to take on and your financial discipline. A bigger workforce means you will need a larger premium pool and a more diverse overall health of this population.
As a small business owner with only a few employees, self-funded insurance can work for you. However, you need to have stop-loss coverage to ensure that you’re not too exposed. It is also a good idea to explore level-funded health plans.
Self-funding health insurance can work for small businesses, but it is vital you don’t stretch yourself too thin. Otherwise, you could lose a lot of money for insurance premiums alone. Another thing is since you only have a few employees, you need to have a significant cash flow.
Self-Funding or Fully-Funded?
Your topmost priority as a small business owner is to keep your employees healthy and protected. Therefore, if your staff is not exposed to high-risk situations, it could be more affordable for you to self-fund their insurance coverage than to get traditional health insurance.
Choosing between self-funding and fully-funded health insurance will depend on many factors, and every business’ needs are unique. That’s why it’s best. you speak with an insurance professional to help you make the best decision for you.
Moreover, you need to consider a lot of things as well. Hence, it will take time to search and compare plans to meet the needs of your business and your employees. You should also educate your team on their plan options. It’s a process, which is why it requires thorough planning and having the right professional to guide you through the process.
Self-Funded Health Insurance May Just Be the Way to Go
Due to few employees, many small business owners aim for self-funded insurance because it allows them more freedom, especially when it comes to their cash flow. For most of them, it’s the most practical solution to provide healthcare to their employees. Still, you need to revisit plenty of factors that affect your healthcare plans before you make a decision. If you choose self-funded health insurance, it’s crucial you choose a reputable provider.
Get your self-funded health insurance today here at National Insurance Partners. Partner with us.