Employer Health Insurance: Tips for Purchasing Plans for Your Employees

employeeEmployer Health Insurance: Tips for Purchasing Plans for Your Employees

With the AEP finally, here, you might be wondering how you can cut cost this year. One of the frequent changes during this time is for companies considering health plans to share employee health cost. If you’re stuck in this area, today we will share some helpful tips about how to make smart cost decisions when deciding on a new health care plan for your workers.

What To Take Into Consideration When Purchasing Health Plans

What is the most important part of insurance for employees? With around 150 million Americans on employer-sponsored coverage each company can vary and asking your employees what they are looking for can help narrow down your choices. What is the average age of your office? If its predominately young people who are unmarried family plans or PDP’s probably won’t be your best bet. Do you want your employees to split the cost of premiums with you? Another question you should ask yourself is how big is your business? This will also give you an estimate of what kind of plans you may have to offer by regulations or if you can offer health insurance alternatives. There are three types of insurance options at least for small business you can look into.

Different Health Insurance Options for Employees

Group health insurance is for companies with a large number of employees. The best part about group insurance is that it’s familiar and easier to understand, but it is also expensive.  Another option you might have is insurance stipends. These health stipends are not a group health plan so there isn’t as much regulation and understanding these plans are very easy to administer. Stipends do come with cons such as businesses being required to pay payroll tax on reimbursements and employees don’t necessarily even spend this money on health insurance. Personalized Health benefits give employees a monthly benefit allowance to use for health expenses. These plan types have been increasingly becoming more popular in recent years and allow businesses to define their own budget.


In conclusion, you will want to choose an option best for your employees. You should take the time to work with an expert agent who can discuss the pros and cons of each option. Get the data on what kind of employees you have, marital status, age, and what benefits they are looking for. Whatever you decide on remember, employees should come first because those are the people you’re purchasing a plan for.

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Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions so submit a comment below!

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