What is Small Business Health Insurance?

What is Small Business Health Insurance?

Unfortunately, small businesses in the United States bear the weight of heavy expenses when it comes to health insurance for their small company. It is possible and fairly easy for small businesses in the U.S. to obtain health insurance for their employees, but it can be very costly. Insurance companies often penalize small businesses, with higher premiums, because they (small companies) are unable to spread the risk among a large number of employees. Usually, insurance carriers categorize small businesses as companies with 2-50 employees, though each insurance plan is different and the range may extend to as many as 250 employees.

There are several options for small business health insurance from the local level all the way up to a national level. The first is group insurance purchased directly from the insurance company.  Group insurance quotes may be obtained by an insurance broker or via the Internet. You’ll need only a small amount of information about your employees to get started, including their full name, date of birth and home zip code.

If you find that small business insurance is just too costly, there are several alternatives. The best place to begin is with your local chamber of commerce or trade association/union. Some of these groups form purchasing pools to obtain affordable small business health insurance for businesses in their region.

If your local resources don’t offer what you are looking for, the next step is your state insurance department. It is their job to have information regarding purchasing pools, either in your local area or statewide, which may be able to offer less expensive options for small businesses.

A third alternative is the National Federation of Independent Business (NFIB). The NFIB is a national lobbying group who is currently petitioning Congress to amend the Patient Bill of Rights to make more affordable health insurance available to small companies. Their success in the House of Representatives in August, 2001, is a positive step toward a full amendment to the Patient Bill of Rights.

The NFIB is pushing for Association Health Plans, similar to local purchasing pools, which would allow small businesses to obtain health insurance as a large group, and at a lower rate. At this time, they have information on local pools in each state that will assist small companies in finding affordable health insurance. You may find them on the Internet or call them at 202.554.9000.

If you are looking for small business health insurance, try some free online instant quotes from Qooqe.com to get a starting idea of price range and coverage from many different provider companies. Of course, as with any insurance policy, be sure to research all aspects of the plan before committing to any insurance carrier.


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