Why Small Businesses Are Turning to Health Sharing Plans for Affordable Coverage

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The health care landscape in the United States has dramatically changed in recent times. Small business owners in particular are feeling the pinch of increased pressure to provide health benefits and health-care costs. With continuously increasing premium costs for traditional health insurance, many small businesses have increasingly sought alternative means of being able to afford quality, affordable healthcare for their staff. Among such options available, one innovative, cheaper option that is getting progressively popular is that of a health sharing plan.

Health sharing plans are alternative health care whereby small businesses pool together resources and share the medical expenses. Not like traditional insurance, health sharing plans operate on a model similar to cost-sharing among its members. Here is why small businesses are turning to small business health sharing plans as a viable alternative for offering affordable coverage.

1. Affordable and Predictable Costs

The biggest challenge that small businesses face when trying to offer health benefits is the cost. Yearly health insurance premiums have been skyrocketing, placing pressure on the business owners who desire a comprehensive cover but are simply unable to afford it. Health sharing plans, by contrast, are more affordable.

With health sharing plans, businesses contribute a fixed monthly amount to a shared pool. The monthly contribution is usually less than what traditional insurance companies charge as premiums. Most plans have predictable costs, making it easier for small business owners to budget for employee healthcare. The ability to keep healthcare costs manageable without sacrificing coverage is a major draw for small businesses.

2. Flexibility and Customization

One other type of health insurance plan, usually more flexible than other regular kinds, is health sharing plans. Small businesses often complain about one-size-fits-all insurance plans, not truly fitting their employees’ specific needs. Health Share plans can better accommodate a specific business and its specific employee needs.

For example, some health sharing plans will allow a business to decide on their choice of preferred provider, or adjust the amount of coverage depending on what may best serve their employee needs. In this manner, businesses avoid being placed into rigid, one-size-fits-all insurance schemes, and provide a more individualized form of care to the employees.

3. Focus on Preventive Care

The focus of health sharing plans is on preventive care and wellness. It might be advantageous for small businesses that need to keep their employees healthy and avoid the cost of healthcare. Most traditional insurance programs are more treatment-focused, as they are set up to treat after an illness or injury has occurred. Health sharing programs encourage health by covering routine check-ups, wellness visits, and other preventive services.

By focusing on wellness, the business can minimize the risks associated with serious health issues, hence making it easy to have the costs of healthcare brought down in the long term. Healthy employees who go for preventive care are fewer about experiencing expensive medical emergency conditions or chronic diseases to them and the business.

4. Simplified Administration

It can be a huge burden for small businesses to navigate the complexities of health insurance administration. From managing paperwork to dealing with claims and compliance, the process can be time-consuming and confusing. Health sharing plans offer a simplified administrative process, making it easier for small business owners to manage employee healthcare coverage.

Such plans often involve relatively few administrative tasks as is the case with traditional insurance. Not multiple policies, but this kind of plan aims for the sharing of the costs of medical expenses. All of this allows a company to do what they should do: run a business, without adding complexity to control an intricate insurance plan.

5. Encourages a Community-Based Approach

The shared responsibility forms the basis of a health sharing plan. It collects contributions in a common pool and uses those funds to pay for any medical expenses of a member who is currently in need. It’s actually a community-based approach because it creates a feeling of solidarity among participants and then forms a supportive network in which people are working as a team to control costs in healthcare.

For small businesses, a community-driven model stimulates healthy workplace culture. The employees who work in the healthcare plan will feel connected and hence better cared for by both the employers and colleagues as it increases the job retention level and satisfaction of an employee. Such feelings, therefore, may spread much far than in a health-related context to develop into an even more cohesive and highly interacting work force.

6. Compliance with Healthcare Regulations

Although health sharing plans are an alternative to traditional insurance, they are designed to be compliant with the federal healthcare regulations, which include the Affordable Care Act in many cases. It is one of the considerations for small businesses when searching for healthcare options. Health sharing plans can be a way to meet the employer mandate requirements of the ACA but still offer affordable coverage to employees.

This implies that small businesses can offer a health sharing plan, hence ensuring that they meet their legal obligation without the high costs associated with traditional health insurance.

7. Growing Popularity and Trust

More and more small businesses nowadays realize the merits of a health sharing plan and continue embracing this alternative healthcare model. The trusting nature being displayed by several businesses which report positive experience is making it become common for such health sharing organizations. By word of mouth and by referral from fellow small business owners, these health sharing plans are building trust and reliability regarding healthcare.

This success story testifies to the fact that health sharing plans have proven quite effective in addressing both the financial and healthcare needs of businesses and their employees.

Conclusion

Health sharing plans are an attractive alternative for small businesses looking for a more affordable and flexible healthcare solution. This provides affordable options, customizable offerings, focus on preventive care, and administration efficiency, making health sharing plans valuable for small businesses in pursuit of quality coverage without blowing up the budget. In an expanding number of small businesses finding this innovative model appealing, health sharing plans will indeed be part of the future of employee healthcare coverage.

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