As a small business, it’s vital to offer an attractive employee benefits package to hire and retain valuable, talented employees. It can be a challenge to offer health insurance to your employees without overwhelming your budget and taking on additional risks and responsibilities. It’s important to continually assess and adjust your approach as your business and the healthcare market evolve. We’re here to help by offering our members several strategies and solutions.
Healthcare Strategies for Small Business Employers
- Compare Plans: Work with an insurance agent to compare different health insurance plans. Look at the premiums, out-of- pocket costs, network providers and covered services. Adjusting plan designs, such as increasing copayments for specialist visits or adding prescription drug tiers, can help control costs.
- Consider Different Types of Plans: Evaluate whether a Health Maintenance Organization (HMO), Preferred Provider Organization (PPO) or High-Deductible Health Plan (HDHP) best fits your needs.
- HSA Benefits: If you opt for a High-Deductible Health Plan (HDHP), your employees can contribute to a Health Savings Account (HSA). Contributions are tax-deductible and withdrawals for qualified medical expenses are tax-free.
- Qualified Small Employer HRA (QSEHRA): Small businesses can reimburse employees for medical expenses, including individual health insurance premiums, tax-free. This is a good option if providing traditional group health insurance is too expensive.
- Premium Sharing: With a Premium-Only Plan, your employees can share in the cost of their monthly premium with pre-taxed dollars through their payroll.
- Preventive Care: Most health plans cover preventive services at no additional cost. Utilize these services to catch potential health issues early and avoid more costly treatments later.
- Virtual Visits: Many health plans now cover telemedicine, which can be more cost-effective than in-person visits for minor health issues. This can reduce your overall medical expenses, indirectly affecting your premium costs.
- Employee Education: Provide resources and education to help employees understand their options and choose the most cost-effective plan for their circumstances.
Employee Benefit Solutions for Small Business Employers
At SBAM we connect our members with expert partner re- sources to keep you up to speed with regulatory changes and give you a valuable selection of insurance, compliance and human resource products and services. Here are just a few of the trusted resources we offer our members to ease the hassle of offering a robust employee benefit package:
- Composite Rating: SBAM offers a composite rate option for our members enrolled in our sponsored health plan. Instead of assigning individual rates to each member of a group based on their age, gender and other factors, a composite rate provides a single premium rate for all members of the group, offering a fair and equitable opportunity for all employees.
- Consumer Directed Health Plans: With the cost of health insurance continuing to rise, most employers ask their employees to share in the cost of health insurance through premium sharing, deductibles and co-insurance. SBAM’s Flexible Spending, Health Savings Account and Health Reimbursement Arrangement administration allows both you and your employees to save through tax-preferred methods.
- Member Care Service Team: SBAM handles all the billing and enrollment for your sponsored insurance coverage through our internal Member Care Team here in our Lansing office. We save you time and hassle by managing employee enrollment changes, billing questions, new business paperwork and life and disability claims through the online SBAM Service Portal. You receive one consolidated invoice for your monthly SBAM insurance services including health premiums, life and disability premiums, FSA, HSA and HRA administration, and COBRA administration.
- COBRA Administration: The SBAM Member Care team sends all necessary letters and notifications, provides a monthly activity report and online access to your account and collects premium payments from the COBRA-enrolled beneficiaries—all for only $35 per month.
- Pooled Employer Retirement Plan (PEP): The SBAM PEP is cost effective and outsources administration and liability to reduce your fiduciary risk. Start up plans may be eligible for up to $5,000 tax credit to cover the TAG annual administrative fee (for three years). There is an additional $500 annual credit for three years when a business establishes a retirement plan with automatic enrollment.
- Free Summary Plan Descriptions (SPD): An SPD is a required legal document that describes the rights and responsibilities of both the employer and employee under the group benefit plan by providing detailed information about the health plan itself.
- Drug Screening & Background Checks: Affordable solutions to identify candidates and employees who may be using illegal substances or reveal a history of criminal or risky behavior.
- Employee Handbooks: Provide a structured approach to managing employee relations and expectations. Create a customized handbook for you to use as a foundational tool for fostering a positive, productive and legally compliant work environment.
- Ask an Expert: Refer to our online Ask An Expert for answers to all your HR and legal questions. Our trusted partners can be relied on for accurate, timely information so you can resolve the most complex situations that arise in your small business.
- Wellness Program: Implementing a wellness program in a small business can be an effective way to promote employee health, enhance productivity and improve overall job satisfaction. Our program is designed to be affordable, simple and fun.
- Education and Training: Employee education and continuous learning enhances both individual performance and the overall success of your company. SBAM offers a wide variety of educational programs and training services to help your employees optimize job performance and thrive in their personal career development.
By being creative and thoughtful about the benefits offered, your small business can create a competitive and attractive package that meets the needs of your employees. And with SBAM, you know you’re being connected with trusted partners that can help ease the financial and administrative burdens that you’re so often faced with.
Learn more at www.sbam.org/member-benefits. Contact our Member Care Team at by email or by calling 877-949-7226.
By Kellie Neirynck; originally published in SBAM’s September/October 2024 issue of FOCUS magazine
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