Budgeting health benefits can feel like walking a tightrope. Indeed, with the wrong approach, the health benefits can be expensive, unpredictable and restrictive.
However, you should not let your budget benefits for health to chance. Follow these eight tips for low-cost health benefits to low hassle small business 
Tip -. This article is an excerpt from our recent eBook, "10 Budget Pitfalls Small Business Health Services (and how to fix them)" to download the full resource, click here
Tip # 1: Shop around the renewal ..
for many employers, the annual turnover time is just around the corner. And for almost all employers (0% in one study), this means treating renewal rate increases -. Many in the double digits
Have you accept a blow to your budget for health services? No. That's why our first tip is to shop around at renewal
Work with your broker to explore new health plans or carriers, negotiate your premium rate, or change your contribution strategy.
Tip # 2: Evaluate your contribution strategy
What you offered health benefits in the past, or if you want to provide benefits for the first times, you may feel like buying and contribute to a traditional insurance group health is the only way to provide quality health benefits. However, it is not. There are various strategies available contribution.
For example, instead of paying for the premiums, you can pay a "defined contribution" to individual health insurance for employees. This is a relief for many small employers because it provides a way to provide great benefits for employees at a manageable cost
Tip 3 :. Take control of annual costs
When you have unexpected increases in costs year after year, the budget for health benefits is difficult - if not impossible. When you can not budget for reliable health benefits, you also can not confidently tell employees that you will be able to offer long-term benefits.
Take control of annual costs by opting for individual health insurance and a defined contribution strategy. With this model of a company health benefits may:
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Set the amount of contribution to employee health (no minimum contribution amount)
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Change the budget on the terms of the company only and
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Reliably budget for short-term health benefits and long term.
Tip 4: Use technology
spending too much health benefits of time to administer? There's an app for that. Or, at least one cloud-based software. In today's market, there are a plethora of health benefits software options to make administration fast, easy, and compliance
Tip 5 :. Customize Benefits
As a small employer, you want to provide quality services to recruit and retain top talent in your industry. But that does not mean you have to spend the same amount on each employee.
As such, tip number five is to personalize your employees health benefits to meet your recruiting and retention goals.
Seem out of reach for a small employer? It's not. Use a strategy defined contribution offering a different contribution to different types of employees. You can customize the benefits based on employment criteria such as the bona fide role of employment, weekly hours worked, location, etc. You can also vary the contributions of family status
associated :. Want the best benefits? customize with redemption premium
Tip # 6: Do Disqualification tax subsidies to employees
under Obamacare, significant federal discounts (called the premium tax subsidies or premium tax credits) are offered to employees - but only for individual health insurance, and only if your small business does not offer group health insurance
in fact, by simply offering the 'group health insurance for employees and their families. You exclude the benefit from $ 2,000 to $ 12,000 per year for their health insurance.
This is one of the advantages of the major pitfall fiscal health. Especially for your employees.
But do not worry. You must not offer group health insurance to offer great health benefits.
Instead of contributing to a group insurance plan, provide a defined contribution. Employees to purchase individual health insurance, access to tax subsidies and are reimbursed by the company for the unsubsidized portion of their premium (or a portion of their bonus)
Related :. A Real Life Example - defined contribution and health insurance subsidies
Tip # 7: Do not ignore compliance
There are several rules and federal regulations an employer must follow when offering health benefits. And, compliance requirements have only increased with the Affordable Care Act (ACA) .By ignoring compliance requirements (or simply ignoring them), you set up your business for costly penalties.
To avoid costly fines for being out of compliance, improve your compliance requirements under ERISA, COBRA, HIPAA, and ACA. Unsure where to start? Your broker or provider of software administration software is an excellent resource
Tip # 8 :. Offering benefits could save you money in the long run
This is a thought ... offering health benefits can actually help you save money in general.
How? The cost of employee turnover is expensive - as much as 2x annual salary of employees for an employee to executive level. The package from right to health benefits can help you attract and retain key employees and to limit the cost of employee turnover. Over time, many companies see that health services pay for themselves.
Conclusion
With the renewal season upon us, small businesses open their renewal notice health plan and scrambling for ways to provide more hassle low, lower cost health benefits.
But do not worry. Follow these eight tips to get your health benefits budget under control, then start with a quick comparison of the costs of different health benefit options. To do this effectively, use an online tool (like this one) or have your health insurance advisor for a breakdown of the options and costs.
What are the challenges you encounter this renewal season? Do you have questions about the health benefits of small business? Leave a question or comment below.
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