Scott started his tech consulting company in Austin a few years ago with a friend. They were in search of charting their own course and wanted to give it a go.
Over this brief time period, they had grown and built a solid team of software developers, project managers and support staff. Business was obviously going well, but Scott wants to take better care of the team he has assembled. His accountant recommended maximizing what their business health insurance plan did for employees.
As Scott began doing research on health insurance plan options, he realized that there are almost unlimited options in providing health benefits to his team. When he selected the current plan in place, he was focused strictly on the cost of health insurance rather than the benefits. He wanted to change that. To do that, he had to begin thinking differently about employee benefits and what he could reasonably expect in 2025. Here is a quick list of what he found.
Health Insurance Costs Keep Rising
The first thing Scott knows is that health insurance costs are going up. He’s not alone in feeling the pinch of the increase in premium amounts. All across Texas, small businesses are dealing with higher health care costs which include premiums. In fact, studies show that small business health plans have more than doubled in price over the last 20 years.
Scott looks at what he paid last year and compares it to the some of the health insurance options he has found and wonders what to do. The price jump from the health insurance companies is real. But he also knows that having a great health benefits package is a key to attracting and keeping great talent.
He likes the idea of exploring unique types of health plans to provide better ways of getting the health care services that his full time employees want. That’s when he starts asking his health insurance broker if there are any creative ways to keep the health care cost down.
Tax Credits Can Help Small Businesses Save
As Scott was talking to his local health insurance advisor, he was reminded of the Small Business Health Care Premium Tax Credit. He remembered it, but had never really looked into the details of it before. The advisor explains that since his company has fewer than 25 full-time equivalent employees, and he pays an average wage under the threshold, he can qualify for these credits. The premium tax credit could cover up to half of what he pays toward employee health insurance premium payments.
Scott is surprised. That kind of savings could go a long way to providing meaningful ancillary health insurance benefits that his employees had asked about. He had assumed better coverage was out of reach, but now it looks like there might be more wiggle room in the budget for things like Health Savings Accounts than he originally thought.
That leads him to explore even more ways that other Texas business owners are keeping costs down.
Exploring Alternative Health Coverage Options
Scott expanded the conversation to hear more about using alternative health plans. He was keenly interested in finding ways that he could help his team reduce their out of pocket expenses for health care costs.
These non-qualified health plan options can be leveraged to reduce the out of pocket medical expenses that his team can face when they use their business health insurance plan. Since they often have low monthly costs, it can make the employee feel more loved while also not greatly increasing the monthly health insurance premiums for either his team or the business.
Scott loves that he has choices that clearly benefit his team. He knows that they will see the vision of what he is trying to provide to them. Now that Scott has seen what’s out there, he is excited to have a trusted advisor to help him with the final selection process.
Working With Insurance For Texans
Scott has worked with Insurance For Texans the last couple of years to secure all of his insurance needs. From the first call, he felt like he’s talking to someone who actually understands what small businesses go through.
They have taken time to learn about his company, his people, and what matters most to him in protecting his business and employees. They help him look at real options, explain the pros and cons, and even help him figure out if he qualifies for the premium tax credits.
Scott walks away with a plan that fits his budget and gives his team solid coverage. He feels confident knowing that he didn’t just pick something off a shelf. The customized plan is something that actually works for his business in 2025.
If you’re a small business owner like Scott, looking to make smart choices about health insurance this year, click the button below to connect with Insurance For Texans. They’ll help you find the plan that fits your team and your budget.