States and health insurance providers working together to provide low cost health insurance is one of many topics discussed in recent small business health insurance news and trends. Over the past few years, several states have been working diligently to make health insurance more affordable for small businesses.

The cost of health insurance for small business owners is a growing concern. High premiums are greatly affecting small business’ expenses, causing many business owners to decrease business health care insurance coverage options and even stop offering health insurance altogether. Check out the following recent small business health insurance news and trends that could save your company money.

1. Several states are now offering business health insurance programs.

2. You can cut costs by exploring low-cost business health insurance options.

3. Wellness programs can cut small business health insurance costs.

Action Steps
The best contacts and resources to help you get it done

Learn more about state small business health insurance programs

To encourage small business owners to continue offering business health insurance, several states are chipping in money to decrease the costs to employers. For example, Rhode Island recently teamed up with Blue Cross Blue Shield to offer a small business medical insurance program with lower premiums and reduced co-payments and deductibles.

I recommend: Learn about how states are trying to control costs of medical insurance for small businesses by reading the New York Times. You may also consider checking out the National Conference of State Legislatures to find out more about states and small business health insurance.

Consider medical savings account for small business health insurance

Established by Congress nearly 10 years ago, medical savings accounts (MSAs) help small business owners afford to provide health care to employees. Because MSAs have a set premium regardless of employee ages, this type of small business health insurance can help companies cut health care costs.

I recommend: Check out Healthinsurance.info to read more about the benefits of MSAs. You may also find more information about MSAs and other types of small business health insurance plans by visiting the Entrepreneur website.

Cut business health insurance costs by keeping employees healthy

Encouraging your employees to stay healthy by offering wellness programs and incentives is a great way to cut your small business health insurance costs. In recognition of the importance of staying healthy, several states require that employers offer wellness programs and incentives to qualify for state small business health insurance programs.

I recommend: Check out small business group health insurance trends by visiting the Wall Street Journal website to read up on health care insurance reform. You may also learn more about health insurance for small business owners wellness programs by checking out IndustryWeek.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Most small business health insurance quotes are dependent upon your group's average age, health, business location and other factors. It's important that you take some time to create good estimates about this information to ensure that you receive as accurate a quote as possible.

The maze of insurance options for small businesses is as complicated as today's medical problems. If you're careful when you create a more economical insurance plan, you'll not only control costs, you'll also boost employee recruitment and retention. Here are a few steps you can take to slash health insurance costs:

1. Determine if managed care will help you manage costs. Many small businesses find managed care programs cut their health-care costs by 15 percent or more over traditional plans.
2. Get employees on your side. A healthier workforce translates into lower costs. Give employees incentives to stay healthy and reward them when they take the extra steps.
3. Compare insurance agents and shop around for the best deal. The right agent should be willing to negotiate: comparable health insurance programs can vary in cost by up to 20 percent.
4. Consider options like health savings accounts or joining a group plan to decrease expenses.

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Manage your costs

Managed health-care programs help small businesses reduce administrative and paperwork costs while cutting premium expenses. You can choose from health maintenance organizations (HMOs), preferred provider organizations (PPOs) and open-ended HMOs, known as point-of-service plans (POS).

I recommend: BuyerZone's Health Insurance Buyer's Guide explains each managed-care option.

Find a broker who works for you

A skilled health-insurance broker will help you compare apples to apples in health insurance costs. Along with costs, your agent should explain all coverage aspects, reimbursement policies, employee privacy methods, deductibles, employee advocacy, incentives, screenings and claims analysis.

I recommend: Insurance Web is operated by insurance agents and carriers who help you compare insurance quotes from leading insurance companies. Or visit the National Association of Health Underwriters to search for a local broker.

Individualize your plan with innovative options

Small businesses can take advantage of health insurance options tailored for their needs. Health savings accounts (HSAs) are tax-free medical savings accounts generally used along with high-deductible health plans.

I recommend: Check out About.com's primer on HSAs to learn more about how they work. Search HSAFinder to locate HSAs. Joining larger groups can also lower your insurance costs; see eHealth Insurance for a list of group health plans.

Create a healthier workforce

Most work forces struggle with common health care problems like obesity, smoking, high blood pressure and diabetes. The more you focus on your employees' health, the more you gain in profits. Preventative efforts like from flu shots, health club access and online health assessments help reduce absenteeism and improve well-being.

I recommend: Investigate the free wellness program at SparkPeople. On the other end of the scale is Health Fitness Corporation (HFC), a wellness consultancy that serves brand-name clients like Verizon and FedEx. Or check out the Healthy Guidance wellness program developed by ComPsych.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Raising co-payments by as little as $10 or offering working spouses incentives not to join your company's plan can reduce costs. If you eliminate coverage for brand-name medications, you can save considerably — in one Blue Cross plan, participants could save 28 percent on premiums.
• •  Implementing wellness programs can help save money on insurance premiums, although the actual savings may be slight unless you have a large work force.
• •  Before joining or switching HMOs or PPOs, ask what percentage of their physicians are accepting new patients.
• •  Employees can roll over HSAs from year to year to build a retirement nest egg.
• •  Health insurance information is often obscure and filled with jargon. Use videos, posters, speakers and other visual aids to help all employees understand your health insurance program.

Staying abreast of small business health insurance basics will save you money. For example, did you know that a small business, a company with less than 50 and more than two employees, can qualify for small business group health insurance benefits?

The cost of health insurance for small business owners is a growing concern. Lower premiums and more coverage are two huge benefits of purchasing group medical insurance for small businesses. Another benefit is that employers receive tax deductions for group health insurance contributions. Learn the small business health insurance basics by:

1. Investigating how small group health insurance works.

2. Obtaining accurate small business health insurance quotes.

3. Identifying the differences between various business health insurance plans.

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Learn the ropes of small group health insurance

Insurance companies calculate small business health insurance quotes for you and your employees as a group. However, employees can make revisions to business health insurance policy coverage options at an additional cost. While business health insurance is less expensive than individual insurance, it's still pretty costly.

I recommend: Obtain more information about health insurance for small business owners by visiting Health Insurance In-Depth. You may also read about your options in health insurance by visiting My Own Business.

Get accurate small business health insurance quotes

Obtaining accurate health insurance for small business quotes can be difficult because rates are dependent upon your group's average age, health, business location and other factors. Try to take some time to create good estimates about this information to ensure that you receive as accurate a quote as possible. It's also a good idea to compare quotes received from various small business health insurance providers.

I recommend: Check out StartupNation for tips on finding affordable small business health insurance providers. You may also read more information about obtaining health insurance for small business quotes by visiting SecureInsuranceQuotes.com.

Choose the best small business health insurance plan for your group

There are a variety of small business health insurance plans from which to choose. The primary types of small business health insurance plans are HMOs, POSs, PPOs, fee-for-service and MSAs.

I recommend: HMOs are health care management plans, which includes a fixed monthly fee. Under a POS or point of service plan, members receive limited choices and lower insurance costs. A PPO is also a managed care plan with more flexibility than an HMO. MSAs or medical savings accounts are great alternatives for small business employees or individuals. Check out Entrepreneur to read up on how to make wise decisions about small business health insurance plans. You can also obtain useful information from HealthInsurance.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Encouraging your employees to stay healthy by offering gym membership discounts and access to weight management programs and seminars is a great way to cut your small business medical insurance costs.

If you own a small business, one way to protect your employees and keep them satisfied is by offering them health insurance. Many insurance providers cater specifically to small businesses, offering federally regulated group plans at discounted rates. Choosing a plan for your employees can be tough, especially if you are unfamiliar with the terminology found on insurance applications and claims forms. To stay ahead of the game, you will want to learn small business health insurance key terms.

Action Steps
The best contacts and resources to help you get it done

Pre-existing condition

Many group health insurance plans do not cover pre-existing medical conditions. While this may not affect healthy employees, it does affect new ones who previously diagnosed with a condition within the last six months.

I recommend: The Wisconsin Office of the Commissioner of Insurance maintains a website filled with information about health insurance terms and policies, including pre-existing conditions.

HSA

A health savings account, or HSA, is not a form of health insurance. Instead, it gives employees a tax-free way to save money for future medical expenses.

I recommend: For more information about HSAs, check out the glossary of health insurance terms on HSA For America.

Premium

As it applies to small business health insurance, a premium is the amount you must pay the health insurance company each period on behalf of your employees. Periods are usually one month long.

I recommend: EHealthInsurance outlines the basics of premiums on its small business insurance homepage.

COBRA

Short for the Consolidated Omnibus Budget Reconciliation Act, COBRA gives employees the right to continued health coverage between jobs. Some health insurance providers offer COBRA administration services, saving employers from having to keep track of the status for previous employees.

I recommend: You can learn more about COBRA from the U.S. Department of Labor.

FSA

Flexible spending accounts, or FSAs, act as a form of reimbursement for medical expenses for employees. An FSA is not an insurance-based program, but many employers include it in their health insurance packages.

I recommend: The Bureau of Labor Statistics has published an article on HSAs that covers both FSAs and health reimbursement arrangements (HRAs).

PPO

A preferred provider organization, or PPO, is a network of doctors and hospitals that work with insurance providers to lower medical expenses for their clients. Some small business plans give employees and their families access to PPOs, although many do not.

I recommend: The American Association of Preferred Provider Organizations has more info on PPOs.