Common Small Business Health Insurance Misconceptions (NAPS)—Running a small business ~ is challenging enough without the confusion health insurance can cause. Too often, the resulting angst is driven by common misconceptions that an expe- rienced benefits advisor can help dispel. Health insurance continues to be one of the most important and valued benefits that employers can offer workers. After salary, it is consistently the top factorfor attracting andretainingtalent, according to numerous employee benefit studies by Glassdoor and others. This is the case whether a company has two employees or 2,000. Navigating the employer-sponsored benefit landscape, however, can be es- pecially daunting for small businesses. Cost and compliance considerations alone can seem impenetrable. But these perceptions are frequently rooted in fallacy rather than fact, said Ron Goldstein, president and CEO of CHOICE Administrators, the nation’s leader in developing and administering employee-choice health benefit programs and exchanges for small employer groups. The company’s exchanges include the country’s first and only multicarrier private exchange, CaliforniaChoice. Goldstein cites three of the most frequent misperceptions amongst small businessesas follows: + It’s too expensive. While there are certainly costs involved with offering health insurance, providing coverage options does not mean a companyhasto break the proverbial bank. “As with any operational expense, the first order of business is to establish a budget,” said Goldstein. “An agent can then work with their client on what is most appropriate and affordable for their needs” One exampleis using a tool such as defined contribution. This is where a business provides each employee with a fixed dollar amount they then can choose how to spend. Workers can select from a set of health plan choices and pay the difference not covered by the employer's contribution. So if they want to spend additionally for a more benefits-rich plan, they can. In turn, a companyis able to lock in costs. This provides budget controls that can be planned and managed monthly and annually. eIt wort meet everyone's needs. Small businesses can find and offer health plan solutions that meet the di- verse needs of their workforce, and pro- fessional agents can help point the way. New systems and technology can make it easier for small businesses to provide quality health care. Well-designed health care exchanges, for instance, can be a great option for of- fering a wide selection of health insurance plans that ensure choice and access to care for employees who mostlikely need very different coverage. A 22-year-old just starting herfirst job will likely want a different plan than a 59-year-old sales managerwith a spouse,three children and plansto retire in the near future. A good exchange, then, can offer multiple health insurance plans within a single package. So regardless of which options employees select, businesses get one monthly itemized bill and can manage overall benefit offerings through a single website and online portal, all with the support and guidance from their broker or benefits advisor. It’s too complicated. ‘The industry might be complex, but offering health insurance doesnothave to be overly difficult for a small business because there are resources and experts available to shoulder the details. “There are many products and platforms that simplify administration by consolidating information and processes into easy-to-use automated systems,’ said Goldstein. He added that manycarriers and providers have in fact already moved to implement some form of online enrollment. This helps streamline process- ing and speeds up underwriting. But it also provides one point of entry from where employers and employees can then move on to review and compareoptions, choose and enroll in a plan, and manage their benefits throughouttheyear. While health care can be mystifying, small businesses need not fall prey to misinformation and myths. There are options that can be affordable, offer a variety of choices andare relatively easy to manage,especially with the assistance of a good brokeror benefits professional. For additional information, visit www. mycalchoice.com com. or www.calchoice.
