Health Insurance
The 2 major trends in the health insurance industry today are moving from:
- Group to individual plans
- Copay to high deductible plans
Because group insurance rates are two to three times as expensive as individual plans, the best option for small businesses is to let the employees sign up for individual coverage, rather than group coverage. The main advantages of this strategy are that individual plans are 100% portable, meaning that they are not tied to the employer's business. The employee can take the coverage with them, if they lose or change jobs. And because they are individually underwritten, they are much less expensive.
You can also lower your health premiums and taxes by switching from a traditional copay plan to a high deductible health plan (HDHP) and depositing the extra money into a health savings account (HSA). In exchange for lower premiums, you agree to pay for all of your medical expenses until your coverage kicks in. You get to choose the amount you pay in premium. The less coverage you choose, the lower your premium will be.
Policies are being marketed via insurance agents for the same price as going to the insurance company direct and HDHP/HSA plans are available for between $62 -$189 per month. Individuals 18 to 30 years old can get $5 million of coverage for premiums less than $48 a month.