5 Health Insurance Myths and Facts Every Small Employer Should Know
Updated: Nov 20, 2021
Investing in good health insurance benefits for your employees is a difficult task. It's easy to go wrong, what with the vast number of plans, options, and insurance companies to choose from - and that's just in New York.
If you own a small business, you're not the only one trying to figure out the best way to offer health benefits. So here are a few misconceptions about health insurance to help you find your way through the benefits maze.
Myth #1: Small businesses have too small a budget for health insurance benefits.
The number one reason why small employers avoid health benefits (like the plague) is the cost. But there are ways to buy affordable health insurance for your employees - without robbing a bank. Firstly, your business could qualify for a healthcare tax credit depending on its size. Secondly, consult a broker who can pick out the most affordable plans in your area and study your company's unique makeup to get you the most bang for your benefits bucks.
Myth #2: Small businesses aren't mandated to offer health benefits. No legal requirement; no need?
If you employ less than 50 employees, then yes, your business isn't legally required to offer health benefits. But COVID has done a number on lots of workers. Did you know employees are becoming more vocal about their benefits packages, post-pandemic? Even small businesses need to think about benefits as a competitive advantage instead of a perk. This survey revealed that 56% of the American workforce think health insurance benefits make all the difference in their decision to stay or quit their jobs. So consider offering health benefits to set you apart from your competitors.
Myth #3: Missing the open enrollment period means missing out on health insurance.
This is a complete myth. Small businesses can enroll in health insurance at any time. However, the health benefits will kick in only on the 1st or 15th of any month - you'll need to check with your insurance provider.
Myth #4: Sick employees will make health benefits unaffordable for small businesses.
If you or your staff have pre-existing conditions, health insurance may seem unnecessarily expensive. That's why going through a broker can help. They'll be able to find plans for your business that don't consider the overall health of your team in determining coverage eligibility.
Myth #5: Health benefits are just too confusing.
This is true. Health insurance terms and plans can be pretty complicated - even though Healthcare.gov insists that carriers provide a "short, plain-language Summary of Benefits and Coverage." Still, with information available at our fingertips, confusing jargon can prove to be a poor excuse for avoiding the benefits conversation.
Instead, talk it over with a broker like NY Small Health, who can help you navigate through the murkiest insurance waters by:
shopping for the best-priced plans that meet your insurance needs,
assisting in the enrollment process, and
putting to rest every health benefits doubt you (or they) might have.