Working for a Small Firm? Good Luck with Health Insurance

Even though more low cost health insurance plans are making their way to the market, more and more small firms are cutting back on group coverage. In turn, those who work for these smaller employers are finding it increasingly difficult to make ends meet.

High deductible health insurance plans are more available today than ever before. But even though experts thought that this would solve the problem at hand, this has not been the case. Smaller companies are finding it difficult to offer full health insurance benefits because of the high price tag. This is true even when taking into consideration that high deductible plans are available.

One of the main reasons that these plans have yet to catch on is that insurance agents are not pushing them as hard as they could. What is there reasoning behind this? Simply put, agents do not make as much money when they sell a lower cost, high deductible group policy. Remember, the majority of agents make their living based on the commission they earn from sales. In other words, the more money a company spends on health insurance the more money the agent will make.

Those responsible for benefits at smaller firms need to research the options that are available. Even if an agent tries to steer them away from a high deductible policy, they need to have the foresight to get past this and do what they feel is best. By listening to what an agent has to say, a company may end up paying more than they have to. Or worse yet, they may end up cutting out health insurance altogether.

If you are working for a small firm that is offering health care coverage you should be glad. There are many companies of 200 employees or less that are getting rid of their group health insurance policy. And if they are not getting rid of it, they are cutting back on the benefits that are offered.

At this point, it is important for companies to consider high deductible policies even if their agent is advising against it. Remember, they are paid commission which in turn makes them more prone to push policies that cost more. Unfortunately, this does not work out to the advantage of small companies or their employees.