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Joyce Morse

Joyce Morse is an author who writes on a variety of topics, including small business and health insurance.

Joyce Morse has written 26 articles for SB Informer.
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Is Health Insurance Costing Small Businesses Jobs?

Joyce Morse

November 11, 2014


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Small businesses have many struggles to keep going and be profitable.

The rising cost of health insurance for employees is one more issue that owners and managers must deal with. It often comes down to whether the company can afford to keep all of its employees or if it must make cuts to stay afloat.

Avoiding Health Insurance Costs

Some businesses are changing the setup of the staff to avoid paying as much in health insurance premiums.

For instance, a company may combine positions to eliminate an employee. Another company may decide that several of the employees can be part-time instead of full-time or they may hire more people at part-time so they are not obligated to insure them.

Employers may even decide it is more feasible to pay a higher salary for part-time staff so they can go out and get their own health insurance.

 

How to Deal with Employee Cuts

A small business owner that must lay off or let go workers because he or she cannot afford to keep them on will have to re-evaluate how to do business with fewer people.

The company that chooses to go this route should look at it as a short-term solution if the business is to continue to grow. During the time of transition, the business owner must be actively looking at health care plans that are affordable.

Shopping around for health insurance ensures that the small business is getting the best-priced options. The business owner may want to consider different types of plans.

For instance, an HMO plan is often less expensive than a PPO plan. Choosing a plan with higher deductibles also saves the business money.

Another option is to consider reducing other employee benefits to keep health coverage in place.

If your staff values their health care insurance, they may be willing to give up a few holidays or vacation time. You may be able to do away with annual bonuses or cut expenses on the benefits package in other areas to keep your current level of health insurance coverage.

 

For Former Employees

As the article “Recently Unemployed? Here's What You Should Know About Health Insurance” if you have lost your job notes, you must act fast to determine how you will maintain health insurance coverage.

You may be able to be added to a spouse's insurance plan or you may find your own plan. You can also sign up for COBRA until you find a new job. Of course, this is a costly option so it may not work for your budget.

If you are concerned that you will have your hours reduced or lose your job, you may want to start looking for health insurance ahead of time. Paying your premiums ahead while you still have a paycheck will allow you to keep coverage while you look for another job.

Both small business owners and the employees they hire have to deal with the worries of rising health insurance costs.

Begin looking for solutions before the problem gets more serious and companies may be able to keep their costs down and keep their current staff.


                   



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