There’s a reason why fewer than half the American public views the drug companies in a positive light. Pharmaceutical companies often times place importance of the product before that of the customer, hiking the price often times by a factor of 1000; in 2015 Martin Shkreli, the big villain of the pharmaceutical industry made headlines when he increased the price of a generic drug , Darapim – an essential drug used by AIDS patients to a price of $57,000 a month.
Price hikes by big pharma sends the general public – especially the uninsured into a cataclysm of frenzied fear; now this can present an excellent opportunity to employers. You can attract some of these talented terror stricken people to work for you if a good health package becomes part and parcel of the job. Take it one step further and insure your employee’s immediate family members, such as spouse, children, parents and maybe even siblings.
For the uninitiated, health insurance is like a contingency plan that can save you from unexpected accidents and major illnesses – in some cases giving you a much needed second wind at life. But when you are crippled by financial debt that accrued due to expensive medical fees, it can completely turn your life upside down. You’ll be left spending the rest of your life paying off the financial bills if you’re not prepared.
All of this means that health insurance is on the top of the checklist for most prospective employees looking to secure a great job. Smaller employers make the common but big mistake of forgoing an employee health insurance policy entirely to save on some cash in the short run. But the long run? Their entire business sinks to the bottom because they simply couldn’t hold on to their employees who would jump ship whenever a better opportunity strikes.
Among the different options you can provide to your employees are;
Indemnity plan;
When employees use medical care facilities, the insurance company directly reimburses the provider, it can be the full amount or a fraction of it.
Full Medical coverage
This plan includes all medical options and might even cover specialized health services. 100% medical coverage is a heavy financial burden on most employers and it is often dished out in droves by only the most prosperous companies.
Defined Contribution Health plan;
Not all companies can provide a comprehensive medical insurance plan and so the next best option is to provide a fixed monthly program. It allows individuals access to a tax-free allowance which can be used to spend on their personal medical expenses.
It is often a good idea for employers to work under a trusted a insurance broker who should be well equipped to provide information on various health insurance options you can have access to as a small business. The broker will help you shop around the Health Insurance Exchange – a marketplace of sorts regulated by the government which contains insurance plans of varying tiers and coverage. A perfect place to start for smaller businesses.
