At the beginning of each new fiscal year, companies must analyze and restructure their budgets.
Some of the more costly budget items include employee healthcare benefits, especially for small businesses that pay higher premiums per employee than larger companies.
According to a 2011 report by the American Economic Review, small businesses overpay for health insurance by an average 29%.
This figure is largely attributed to an economic occurrence known as "search frictions" - a constraint on marketplace comparison shopping that arises when consumers are unable to choose options based on value.
Healthcare Expense for Small Businesses The implications of search frictions are two-fold.
First, it suggests that the healthcare market is not truly competitive, but rather a marketing race.
Insurance companies no longer have to prove value, but rather spend money on standing out more through bold marketing campaigns.
True competition would allow for health plans of similar value to be offered at comparable prices.
Second, it encourages more frequent analysis, restructuring, and shopping of benefits plans.
It is in the best interest of small businesses to reevaluate their plans every year, as it is likely that they are overpaying.
But to search out better and more cost-effective plans in the current marketplace, comparison shopping requires not only plenty of research, but also some professional insurance advice.
Shop Around and Do Your Research Knowing this about the current economic marketplace encourages small businesses to do their research when it comes to health insurance, as well as compare their plans frequently.
Doing so provides several advantages for companies and employees alike.
Providing optimal benefit packages help small businesses reduce the strain on their limited human resources administration, increase employee satisfaction and productivity, and motivate employee loyalty.
Great benefits also attract better talent and can set a business ahead of the curve among competition.
Shopping around for better benefit packages allows for a reduction in premium costs, which increase over time as a company's demographic shifts over the years.
As the business' average employee age increases, so do the group rates.
This of course means higher premium rates per employee to cover age-related healthcare like preventative screenings for cancer and the possibility of long-term care.
Seek Guidance from Insurance Professionals Comparison shopping in today's marketplace is a convoluted undertaking.
Seeking guidance from insurance professionals saves small businesses valuable time and resources while directing them to a benefits package that meets their individual goals.
Each new fiscal year provides an opportunity for valuable plan restructuring, as small businesses are routinely overpaying for their benefits packages.
Evaluating your company's current benefits program in relation to your budget goals is a fundamental part of staying competitive and allowing for growth.
Health insurance professionals are able to guide businesses to a plan that is best suited and most valuable for their employee demographic while maintaining a functioning bottom line.
Excellent benefits are integral to improving employee morale, taking care of your workforce, and staying competitive in acquiring new talent.
Some of the more costly budget items include employee healthcare benefits, especially for small businesses that pay higher premiums per employee than larger companies.
According to a 2011 report by the American Economic Review, small businesses overpay for health insurance by an average 29%.
This figure is largely attributed to an economic occurrence known as "search frictions" - a constraint on marketplace comparison shopping that arises when consumers are unable to choose options based on value.
Healthcare Expense for Small Businesses The implications of search frictions are two-fold.
First, it suggests that the healthcare market is not truly competitive, but rather a marketing race.
Insurance companies no longer have to prove value, but rather spend money on standing out more through bold marketing campaigns.
True competition would allow for health plans of similar value to be offered at comparable prices.
Second, it encourages more frequent analysis, restructuring, and shopping of benefits plans.
It is in the best interest of small businesses to reevaluate their plans every year, as it is likely that they are overpaying.
But to search out better and more cost-effective plans in the current marketplace, comparison shopping requires not only plenty of research, but also some professional insurance advice.
Shop Around and Do Your Research Knowing this about the current economic marketplace encourages small businesses to do their research when it comes to health insurance, as well as compare their plans frequently.
Doing so provides several advantages for companies and employees alike.
Providing optimal benefit packages help small businesses reduce the strain on their limited human resources administration, increase employee satisfaction and productivity, and motivate employee loyalty.
Great benefits also attract better talent and can set a business ahead of the curve among competition.
Shopping around for better benefit packages allows for a reduction in premium costs, which increase over time as a company's demographic shifts over the years.
As the business' average employee age increases, so do the group rates.
This of course means higher premium rates per employee to cover age-related healthcare like preventative screenings for cancer and the possibility of long-term care.
Seek Guidance from Insurance Professionals Comparison shopping in today's marketplace is a convoluted undertaking.
Seeking guidance from insurance professionals saves small businesses valuable time and resources while directing them to a benefits package that meets their individual goals.
Each new fiscal year provides an opportunity for valuable plan restructuring, as small businesses are routinely overpaying for their benefits packages.
Evaluating your company's current benefits program in relation to your budget goals is a fundamental part of staying competitive and allowing for growth.
Health insurance professionals are able to guide businesses to a plan that is best suited and most valuable for their employee demographic while maintaining a functioning bottom line.
Excellent benefits are integral to improving employee morale, taking care of your workforce, and staying competitive in acquiring new talent.
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