Colorado Small Business Options
Small Business health insurance offers many options in Colorado. You can easily get a quote for small business insurance or continue below for more valuable health insurance information for your small business.
Small Business or Group health insurance is an important benefit to offer your employees but the costs have risen significantly over the last few years. There some important trends for Small Business health insurance that are taking place to address these increases.
1. Consumer Driven Small Business health insurance. Managed Care (HMO's and PPO's) have reached their limit of containing costs. Current Small Business health insurance inflation is driven by utilization (copays for services), prescriptions (brand name costs and direct to consumer marketing), provider consolidation (hospitals forming collective bargaining chains), and increased sophistication and use of diagnostic testing (MRI's, PET Scans, CAT Scans, X-rays etc). The new trend to address these issues is Consumer Driven Small Business insurance. Essentially, this option creates an incentive for individual employees to better utilize their health insurance. It typically involves a high deductible but each employee is given an amount funded into their account for first dollar coverage. When they use up their pot of money, they are then responsible for their medical costs up to a maximum out of pocket. It works well for a few reasons:
80% of employees on Small Business health insurance plans incur $600 or less in expenses in an average year. The majority of claims are driven by a small minority of individuals with chronic or severe, acute situations.
There's a built-in incentive to reduce costs by using office visits as needed (utilization), using generic medications (prescriptions), not going to ER visits for the flu (hospital), and in general...taking better care of their health. In the next few years, employers will more options for this type of coverage and it is likely that a majority of small company health insurance plans will resemble this in the future. A version of it is the Health Savings Account. You can find more information for this option of Small Business health insurance here.