May 4, 201204:06 PMBlog: Working Benefits
The real cost of health insurance for small employers
Most employers struggle with the cost of providing benefits to their staff, especially health insurance. But the small employer has an even higher hurdle to get over as profits are smaller and competition is usually greater. So, we find that many small employers simply don’t offer insurance. Sometimes this has no major affect on the business, especially when the staff consists of people who have other coverage. Other times, it can make all the difference when trying to hire that highly skilled worker or holding on to staff you’ve worked so hard to train. But the real psychological hit comes when a staff member gets sick and they have no coverage at all.
Small businesses are like families and when a member gets sick and then can’t afford to pay, everyone feels their pain. I recently started working with a company where this happened. One of their beloved staff members ended up with an appendectomy. This could not have been prevented with a wellness program or healthy lifestyle. It just happens. And, there’s only one solution…surgery – an expensive proposition. The owner felt so bad about not having a plan in place that he’s now trying to pay more for the event than he would have if he’d offered a plan in the first place. He’s now committed to setting aside the funds to budget for insurance for his staff.
When considering if your small business can afford health insurance, be sure to include the “soft” costs that are more difficult to factor in: lost work, lost employees, lost opportunities. No one wakes up in the morning and says, “this is the day I’m going to get sick and need my health insurance.” That’s why it’s called insurance. There are lots of different options out there nowadays for small businesses. Talk with a professional today to find out if any are right for you and feel confident in knowing your extended “family” is covered.