Small Business Health Insurance–Should Employees Pay More Towards Health Care Plans To Lower Employer Costs?

Economic times are difficult for many small businesses and this is being seen as many employers are cutting back on health insurance or eliminating health care coverage for their workers in order to save on costs. Obviously, some businesses may have plans, like employer group health insurance programs, in place that provide some form of coverage for their workers but due to the slow recovery of the economy, many businesses have deemed insurance unaffordable at the present time, but there is question as to whether employers should have their workers help shoulder some of the burden for health insurance premium costs.

While there are numerous ways that employers may be able to save on health insurance, like only finding a health insurance plan that will match the needs of employees or taking advantage of the small business health insurance tax credit which is currently in place, there are still many companies who feel that health insurance premiums are simply too costly and, again, are cutting back on insurance coverage. It’s understandable that many employees suffer when an employer cuts back on health-insurance plans as costs related to routine medical treatment, medicine, or medical bills which may be incurred if an employee gets injured can be quite costly to uninsured individuals.

Yet, some businesses have asked their workers to shoulder more costs related to health insurance premiums, which can obviously bring mixed results. Employees who may be struggling financially themselves are often unwilling to sacrifice more of their paycheck for health insurance coverage, as many feel this should be offered from an employer without the burden being passed down to workers. On the other hand, when it comes to employees either assisting in paying health insurance premiums or losing their coverage, obviously, many may be willing to make the sacrifice.

However, businesses who may be unable to claim the health insurance tax credit which is currently being offered but still need assistance when it comes to lowering health insurance costs are, again, typically advised to not only research multiple healthcare options, but review their health insurance plan yearly as this could bring more affordable costs to workers. Also, selecting a health insurance plan that only will assist current employees can sometimes lower health insurance costs for employers due to the fact that, obviously, a smaller number of conditions may be covered.

While it’s understandable that many businesses are struggling financially at the present time, it’s also obvious that many employers do not want to cut health insurance which is offered to workers, but may be in a difficult position when it comes to offering healthcare coverage. Again, many employers have often been prompted to either look at health insurance options outside of their current plan, cut coverage on conditions which employees may not have, consult the IRS website about the health insurance tax credit currently available to small businesses, but sadly, there are cases where employees may have to begin contributing more to their health insurance, at least until economic conditions improve and small businesses can begin to pick up the bill for their employees’s health insurance coverage.