Can My Small Business Afford to Offer Health Insurance? (Spoiler: Probably Yes!)

As a small business owner, you want to provide the best for your employees, but health insurance can seem out of reach. While it’s true that nearly half of small businesses with under 50 employees don’t offer coverage, the good news is there are options that might surprise you. Let’s break down why health insurance is not only important but often more affordable than you’d expect.

Why Offering Health Insurance Matters in Hawaii

●Attract Top Local Talent: With Hawaii’s competitive job market, health insurance helps you stand out and secure the best employees on the islands.

●Healthier Workforce: Access to preventative care keeps your team healthy and reduces absences, especially important when dealing with the occasional ‘island sick days’.

●Demonstrate Aloha Spirit: Show your employees you care about their well-being, fostering company loyalty and a positive work environment.

Debunking the Cost Myths: Affordable Options Exist

● “Only big businesses can afford it.” This is simply not true! Hawaii small businesses often qualify for tax breaks and have access to specialized group health plans designed with smaller budgets in mind.

● “It’ll break my budget.” The cost of NOT offering insurance can be hidden. Consider the impact of lost productivity due to employee illness, difficulty attracting top talent, and constant employee turnover eating away at your bottom line.

● “The process is too complicated.” Navigating the world of health insurance can feel like a maze, especially when you’re already juggling the many hats of running a small business. That’s where Proinsurance Hawaii simplifies your life. Our team specializes in Hawaii’s small business market. We will:

  • Explain your options in easy-to-understand termsCompare plans side-by-side, highlighting cost differencesHelp you take full advantage of available tax benefits
  • Manage the enrollment and administration process, saving you valuable time

With Proinsurance Hawaii, finding the perfect health insurance fit for your company and budget doesn’t have to be a headache!

Small Business Resources: It’s Easier Than You Think

● Tax Credits: Depending on your business size and coverage, you may be eligible for significant tax credits that offset premium costs.

● SHOP Plans: The Small Business Health Options Program offers streamlined choices specifically designed for smaller budgets.

● HSAs: Pairing a high-deductible plan with Health Savings Accounts gives employees pre-tax savings options, potentially lowering your overall costs.

● Proinsurance Hawaii: We Represent You Our mission at Proinsurance Hawaii is to help you find the perfect coverage for your needs. We understand the unique healthcare landscape in Hawaii and work tirelessly to compare plans, maximize tax benefits, and ensure you get the best possible rates.

How Much Will It Cost?

While there’s no one-size-fits-all answer, understanding the key cost factors helps you budget accordingly. Here’s a breakdown:

Number of employees: Larger groups generally get more affordable rates due to risk being spread across more people. Even adding just a few employees can make a difference!.

Plan Type:

  • Traditional Plans: These offer more comprehensive coverage upfront, but typically come with higher premiums.
  • High-Deductible Plans: Lower monthly premiums are their appeal, but you’ll pay more out-of-pocket until the deductible is met. Pairing these with HSAs (Health Savings Accounts) offers tax advantages.

Location: Healthcare costs vary slightly across the US, and Hawaii is no exception. Your specific island location can play a small role in pricing.

Added Benefits: Options like vision or dental coverage will naturally increase your overall premium.

The Best Way to Get an Accurate Estimate

Proinsurance Hawaii’s team are experts in finding the most cost-effective plans for Hawaii businesses. We will:

  • Factor in your specific business size and location.
  • Compare a variety of plans to match your budget and needs.
  • Explain the trade-offs between different plan types clearly.
  • Ensure you don’t miss any tax credits you qualify for.

Getting a personalized quote is the most reliable way to understand the true cost of offering this valuable benefit! Get Your Quote

The Numbers: Small Businesses and Health Insurance

Unfortunately, a substantial number of small businesses don’t offer health insurance. According to a study, approximately 57% of firms with fewer than 50 employees don’t provide employer-sponsored coverage. While offering insurance might seem like an additional burden, there are options available to make it a reality for even the smallest businesses.

How to Make Health Insurance Affordable

  1. SHOP Plans: The Small Business Health Options Program (SHOP) Marketplace is designed for businesses with 50 or fewer employees. You can compare plans and find potential tax credits to offset your costs.

  2. Health Reimbursement Arrangements (HRAs): HRAs allow you to reimburse employees for their health insurance premiums and qualified medical expenses, providing you more control over your budget.

  3. Partner with a Professional Employer Organization (PEO): PEOs offer small businesses access to the same large group health insurance plans as much bigger companies, often leading to more affordable premiums.

The Bottom Line

Offering health insurance IS achievable for many Hawaii small businesses.   It’s a smart investment in attracting and keeping great employees, and it’s likely more affordable than you think

Ready to Explore Your Options?

Proinsurance Hawaii is here to help! Contact US for a free consultation and discover how we can make health coverage a reality for your Hawaii business.