Choosing an Employee Health Plan: What Business Owners Need to Know
If you’re a business owner, offering health insurance is one of the best ways to support your employees – and stand out in a competitive hiring market. But when it comes to actually choosing a health plan, the process can feel confusing and even a little intimidating.
Let’s break it down together.
Do You Have to Offer Health Insurance?
First things first: if your business has 50 or more full-time employees, the Affordable Care Act says you’re required to offer health insurance – or face potential penalties. But even if you’re under that threshold, offering a plan can still be a smart move. It helps attract and keep great people, in some cases you may qualify for tax benefits too.
Set a Realistic Budget
Before you start comparing plans, it’s important to know what your business can afford. Many employers choose to cover a percentage of the monthly premium and have employees pay the rest. The good news? There’s no one-size-fits all – just what works best for your budget and your team.
Understand Your Plan Options
There are a few common types of health plans you’ll see:
- HMO (Health Maintenance Organization) – Lower premiums, but your employees need to stick with a specific network of providers.
- PPO (Preferred Provider Organization) – More flexibility, but higher premiums.
- HDHP (High-Deductible Health Plan) – Lower premiums, higher out-of-pocket costs. Often paired with a Health Savings Account (HSA).
Each option has pros and cons depending on what your employees need and how much you’re willing to contribute.
What Will Your Employees Care About?
Think about your team. Do they have families? Do they need regular prescriptions or specialist care? Some might prioritize low premiums, while others value flexibility or mental health coverage.
You can even send out a quick (anonymous) survey to get a feel for what benefits matter most.
Don’t Just Look at Premiums
Premiums are just one part of the picture. Be sure to also consider:
- Deductibles and co-pays
- Prescription drug coverage
- In-network vs. out-of-network providers
- What happens in emergencies or for mental health support
A cheaper plan may not actually be the best deal if it leaves your employees with big bills later.
Get Help If You Need It
Navigating benefits doesn’t need to be your full-time job. A licensed insurance broker or benefits consultant can help you understand your options, manage compliance, and simplify the selection process. Most times, this guidance comes at no cost to you as the employer.
As your trusted advisor, Broussard Poché can also work alongside these experts, bringing decades of experience and financial insight to the table.
Once You Choose, Communicate It Clearly
After you’ve picked a plan, take the time to explain it to your team. Host a meeting, send out a FAQ, or even offer one-on-one chats. The more your employees understand their benefits, the more confident (and appreciative) they’ll feel.
The Bottom Line
Choosing a health plan might feel overwhelming at first, but with a little planning and the right help – it becomes much more manageable. Focus on what you can afford, what your employees need, and what offers the best value. The right plan can make a big difference in your company’s culture, retention, and long-term success.
To speak with someone about choosing the right employee health plan, visit broussardpoche.com.
About Brossard Poche
Broussard Poché, LLP is a trusted certified public accounting firm serving Lafayette, New Iberia, and Crowley, Louisiana. With decades of experience, we provide individuals and businesses with expert services in tax, audit, financial planning, and business consulting. Known for our deep client relationships and proactive approach, we’re committed to guiding clients through life’s major financial decisions while fostering a culture of collaboration, career growth, and community trust.