Health care buying tips

Finding insurance for small businesses
Small businesses that have difficulty finding coverage directly from insurers may want to contact their state department of insurance to learn about small business group health providers in their area. As an alternative, small businesses can join an association that offers group benefits for their members. Companies should be careful to scrutinize the operations of such organizations to ensure that all funds are handled appropriately.

Types of policies to avoid
Watch out for hospital indemnity policies and dread disease policies. Hospital indemnity policies pay for each day you are in the hospital. Unfortunately, most do not provide enough coverage to pay for the typical daily cost of a hospital stay. Dread disease policies cover particular illnesses but tend to be far more expensive than the likelihood of contracting one of these diseases would suggest.

Let employees choose
In 2007, only 13% of firms offered more than one type of health plan. Only 11% of companies with fewer than 200 employees offered more than one option. However, 44% of companies with 200 or more employees had multiple plans. Offering more than one plan gives your employees the freedom to choose the plan best suited for them. There is little additional cost to you, so it can really improve employee satisfaction and make your small business seem a little bigger.

Know the law
If you decide to create your own health care plan, make sure you do enough research to understand the requirements you have to meet. There are many laws and regulations that govern health care, and many states have their own regulations, too.