How do I go about offering health insurance to my employees?
First off, congratulations on wanting to offer group benefits to your employees. It's a great thing to do for them and it also makes a lot of sense from an employee retention standpoint.
The first thing you would want to do is research and reach out to some health insurance or group benefits agents in your area. They will be able to assess your situation and give some recommendations that will help you reach your goals.
That being said, there are a few options that your broker is likely to go over with you:
- You can set up a Health Care Spending Account, which gives employees some credits to use on health care expenses.
- Group Life Insurance is not really health insurance per se, but it gives the employee's family some financial assistance in case they die. The benefits on these plans are based on the employee's earnings.
- Accidental Death and Dismemberment Insurance is more similar to the typical health insurance. It provides coverage to employees who have died or been disabled in the course of their work. This is especially important if they are the primary breadwinner for their household and need something to replace that income should they become incapacitated.
- Extended Health Care Coverage reimburses employees for medical expenses that are not covered under their government sponsored health plan. It includes everything from prescription drugs to vision care.
- You can also opt to provide your employees with Dental Care Coverage, which reimburses them for most – if not all – dental treatments (learn more in 6 Key Things to Know About Dental Insurance).
- Lastly, you have Disability Benefits, which provides some loss of income protection if the employee becomes disabled (also consider some of these 12 Disability Benefit Riders to Improve Your Coverage).
There are many flexible options for business owners to choose from but your local broker would be better able to assess your budget, goals, and needs to recommend the right product (or combination of products) for you (are you running a small operation? Check out this Guide to Group Health Insurance for Small Business Owners).
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