Health Insurance Coverage 101

If you own a small business, it's important to take measured steps and consider all options in choosing the best plan for you and your employees.

By Evan Greenberg

Sep 2018

a doctor drops a coin into a piggy bank
Photo courtesy Shutterstock

Rene Jager, office manager at Glass Tint USA, helped shepherd a recent switch from an independent health insurance provider to a multiple employer welfare arrangement (MEWA) backed by the Missouri Chamber of Commerce and Industry. Jager offers some tips for businesses when offering insurance.

Consider the Alternatives

Sure, employer-backed health insurance plans are an investment, but they are one that can pay off. Insurance is an incentive that a company can offer its employees. It can be an effective tool to woo recruits or keep current employees satisfied with their position. “Turnover in employees is extremely expensive,” Jager says. As she notes, turnover can prove costly, and offering insurance could make people more willing to stay at one place. 

Examine Your Options 

Jager notes the importance of doing your homework when it comes to choosing an insurance provider. Glass Tint USA switched its insurance after it determined that its prior plan was too pricey. “I think it’s really important that you use a broker that can price several different insurance companies, and you can compare each one apples-to-apples so that you know that you’re getting what your corporation needs for your employees and yourself.”

Plan the Deductible

When Glass Tint USA searched for a new provider, Jager was quick to mind the deductible. “When we pursued [insurance through the MEWA program], I didn’t want such a high deductible that employees would feel the need to not ever use it,” Jager says. “If you’ve got such a huge deductible on it, they’re going to stay sick or continue to have issues. It’s kind of a fine line there. If you make it too cheap, they use it for everything.”