Everybody knows that life is full of uncertainties and everyone has to face some unforeseen conditions at certain point of time in their life. Same is the case with businesses running across the globe. The most important asset that a businessman should hold dear is the workers who make a small business a huge success. For many struggling businessmen their workers are the greatest investment that they have done in their business.
According to the ‘Obama care’ or ‘Affordable Care Act’ prevailing in America the businesses that have less than 50 people working in them do not have to arrange for their health care, if they don’t provide health insurance to their workers they won’t have to pay any tax penalties for this.in fact providing the employees with a suitable health insurance plan is very beneficial for running a business. The more health care you provide your employees with, the more are their chances of staying fit. Healthy employees play a significant role in increased productivity. If you provide your skilled employees with an appropriate health insurance plan they would never think of leaving you and will stick to the job. The employers offer health insurance plans for the workers who expect health insurance facilities to be provided by the employer, in order to retain them.one more benefit that the employers enjoy by providing their workers with health insurance is the tax credits that they get if they follow a rule mentioned in Affordable care act.
According to the rule of ‘Obama care’ act if an employer has 25 or even less than 25 fulltime workers who earn less than $50,000 a year will be eligible for tax credit of at least 50% of the amount business owner contributes to pay the premium for the health insurance of his employees.
There are hundreds of health insurance companies operating across the globe and every company has something different to offer. There is one thing that is common among all these companies and it is the variety of health insurance packages for you to choose from. The most common form of health insurance provided for the employees of a small business film is the group health insurance. Though most of the small businesses owners try to do without group insurance for the unskilled labor there are well known engineering companies out there that try to avoid the group health insurance for their skilled workers too. There are a number of such mortgage and engineering companies that want their employees to buy health insurance plans of their own.
If you own a small business where most of the workers already have a health insurance plan with their spouses or have a private health insurance plan, then it might be called a sensible decision to avoid group health insurance for the employees. If the workers do not have any health insurance then it will be a wise decision to invest in the health insurance of the employees.
There are several different types of group health insurance that the employer may provide for his employees to retain them for longer period of time and get better production level. The following are some major types of group health insurance used across the globe.
The Fully Insured Employer Group
In this type of health insurance plan the employer signs a contract with the insurance company according to which the company provides health insurance certificates to the employees designated by the employer. This particular type of plan is good to major medical or health maintenance organizations commonly known as HMO’s.in this type of plan the primary duty of the employer is to pay the premium for all parts of the policy.
The Small Employer Group
It is the type of group that is developed by the insurance companies by combining several different industries and then gathering together the small businessmen or employers to make a bigger group. This way the insurance companies are able to make more accurate estimate of the expenses they would have to bear. The small employers can get some coverage that otherwise is not possible without paying high prices as premiums. This type of health insurance plan works best for the companies that have less than 50 full time employees and fall into affordable group health insurance. Some of the basic services covered in this type of plan are laboratory tests and physical examination. Due to the formation of different small groups the employees get more coverage at affordable premium rates.
Health insurance plan for large employer groups
This health insurance plan for large employer group is almost the same as fully insured group in which the employer signs an agreement directly with the insurance company that provides the health insurance certificates to the employees nominated by the employer.
Self-financed Health Care
The self-financed health care is the type of insurance in which the employer pays from his pocket, all the expenses incurred on the health care of the employees as well as all the other benefits that he employees get from other types of health insurance plans offered at the jobs.in this type of health insurance the employer is also bound to pay for the administrative costs related to this particular type of insurance plan. Most of the large businesses use this type of health insurance plan for their workers.
Health maintenance organization or HMO’s
The HMO type of health insurance plans can be called prepaid insurance plans that the policyholders have been paying the premium for. In this type of health insurance the health care services are provided by a network of health care providers. The HMO group health insurance is much cheaper than many other types of group health insurance but the coverage is limited and you can only get the services of those physicians and hospitals that are mentioned on the list of health care providers nominated by the insurance company.
All the health insurance for business plans offered by different insurance companies prove helpful in retaining the same employees for years, as if the workers get what they expect from a job they never switch between the jobs.