Three Common Pitfalls to Avoid When Buying Health Insurance

Putting together the perfect health insurance plan for your employees isn’t easy–especially if you’ve never done it before. You’ve got HMOs, POSs, PPOs, HSAs, wellness programs, premiums, co-pays, and overall costs to consider. And then you have to make sure it all aligns with the Affordable Care Act. It’s no wonder many so many small-business owners make mistakes the first time through the process.

But you don’t have to follow in their footsteps. Just take a look at these three common pitfalls to avoid when buying health insurance … and then avoid them.

1. Overlook Employee Needs
At the end of the day, decisions about which health insurance plan to purchase shouldn’t come down to price, availability of services, or an impressive list of alternative therapies that are covered by various plans.

It should be all about meeting the needs of your employees.

Yes, prices, services, and the number of innovative offerings all matter, but only so far as they allow you to offer health insurance options that best meet the needs of your employees.

For example, a relatively inexpensive plan that provides access to a narrow, local network might be perfect for employees who have young families and no serious health issues. But is it really going to work for your employees who are older, dealing with chronic illness, and supporting dependents living out-of-state?

Probably not. But then again, maybe. It all depends on your employees, their values, and what they need. So don’t overlook your employees. Instead, engage them in the process early and often. That way you’ll be more likely to find the perfect plan.

2. Pull the Purse Strings Too Tight
BREAKING: Group health insurance is expensive.

OK, that’s not exactly breaking news. It’s more a fact accepted by business owners from coast to coast, from Florida to Canada, and everywhere in between.

Group employee benefit plans can be incredibly expensive, and the last thing you want to do is select a plan that your employees can’t afford and you can’t sustain in the long run.

But you also don’t want to pull the purse strings so tight you’re not able to get a plan that actually meets your employees’ needs. What you want to do is find the happy medium, the tipping point. And, if you must choose, it’s probably better to spend more rather than less (as long as it’s within your budget), because employees value health benefits that meet their needs so much that it makes them more productive, happier, and more likely to stick around.

3. Keep One’s Own Counsel
You already know that health insurance is incredibly complicated. But did you also know that there are people out there who study it, understand it, and can help you make sense of it all.

Experts help you choose the best benefits–for employees and your business. They walk you through options, explain the costs, and help you find the plan that is the best fit for everyone involved.

They make it easy and less stressful, yet some people choose to keep their own counsel and try to navigate the path by themselves.

Sometimes it works. Sometimes it doesn’t. But why take that risk?

Need a Guide?
If you’re ready to find the right health insurance plan for your employees and your business, connect with Flagler Financial today. Their experts will guide you through the process and help you avoid the common pitfalls.