Is Cheap Health Insurance Coverage an Option for Small Businesses?

As the cost of health insurance continues to surge, companies offering “cheap health insurance coverage” are a new crop in Ohio. For the cost conscious, these individual and small business health plans glisten with savings. But in the end, the cheap health insurance can lead to financial devastation.

Nick Kreitzel, the proprietor of a small business with 37-full time employees switched health insurance coverage to save 45 percent a year in medical costs. The cheap health insurance had all the features associated with A and B rated companies — sans the cost. Shortly after Mr. Kreitzel signed up for the new small business health plan, the monthly employee benefits plummeted substantially.

During the first five months, employees were satisfied with the health plan switch. Small claims were paid on time. After a 58-year old employee had a heart attack, accumulating over $75 K in medical bills, the insurance company disappeared without a trace. The Ohio small business was left without insurance coverage. In the end, Mr. Kreitzel had to help his employee pay the hospital bills.

Moral of the story: Cheap health insurance coverage may save money now, but costs more in the long run.

Ohio health insurance saving strategies:

Obtain employee input. Ask your employees to create a list of medical insurance prerequisites. Involving your employees will educate them on the exorbitant cost of medical coverage.

Using your employees’ health plan preferences, compare health insurance quotes from three different insurance companies with a B+ rating or better.

Calculate the cost of selecting health insurance plans with a high deductible to policies with low deductibles. As an alternative consider increasing employee co-payments.

Contact an insurance broker, who is licensed in Ohio for a no obligation health insurance quote. Check out Ohio Life & Health for a free quote.

Tags: ohio health insurance coverage, Ohio Health Insurance Quote, ohio small business health insurance

This entry was posted on Friday, October 9th, 2009 at 2:40 pm and is filed under Small Business Health Insurance in Ohio. You can follow any responses to this entry through the RSS 2.0 feed.