Small Business Owner? Stop Before You Cut Your Employee Group Benefits

While everyone is talking lately about the growing problem with healthcare in America today, the fact of the matter is that costs, especially the cost businesses pay for group health insurance have risen significantly in the last three years. Perhaps hit hardest by this are the small business owners. Many of them feel painted into a corner, when faced with every increasing health insurance premiums from their group insurance carries. They seem to be faced with only one of two choices either have employees pay for part of the benefits, or cut them out entirely. It is estimated that a good portion of the growing ranks of those without health insurance are those that have fallen prey to that dilemma, and became the victim of such cost cutting measures.

But if you are a small business owner faced with such a decision regarding group health insurance for your employees -stop for a moment, and explore all of the options to reduce the costs of your group insurance rates, before you think taking any drastic cost-cutting moves.

First off whether you are in the market for a group health insurance plan for your employees for the first time, or find that your budget is being pushed to its limits on your current plan - shop around. Do not, limit your choices, the internet is a great tool to comparison shop for rates form 100's of companies in your area. Working with online insurance pros such as those at www.insurancebudget.com can help find a plan that is right for you and your budget.

If that doesn't work before you consider cutting out benefits all together consider raising the deductible on your current plan. While this will mean that your employees may have to go out of pocket more before the insurance kicks in, a higher deductible is the surest way of decreasing monthly premiums, and at least your people will still be covered in the event of serious or catastrophic illnesses. And remember take full advantage of all of the tax benefits and incentives available to small businesses. Theses can help to defray some of the cost of high insurance premiums of your group plan. As a small business owner you usually can deduct 100% of what you pay for health insurance for your employees. Also if you offer health benefits as part of an overall compensation package to your employees, you may be able to reduce what you pay in payroll taxes. In an effort to get and keep more people covered many States like California and Massachusetts are offering even greater tax relief and incentives to small business that offer group medical insurance to their employees.