Expand Your Health Coverage

The newly proposed health bill circulated by the chair of the United State's of Senate finance committee practically overhauls the entire health care system including a newly proposed fee in order to help insurance companies pay for uninsured coverage. The proposal is the product of a year's worth of work done by the chairperson and senator Max Baucus.

Health insurance has seen a tremendous growth in the recent years. This is all due to the rising cost of health care and its inevitable impact on our life. In United States, many people have gone bankrupt due to the pressure created by medical bills. According to an article in The New York Times a study of 50 employees from the Congressional Budget Office showed that by 2016 the unsubsidized premium would average around $7800 per year for a single individual and $19,200 for a family and that is quite a lot of money being saved up for paying emergency medical bills. Another study showed that among the estimated 25 million people in United States who are receiving health coverage from small business sector around 3 million people would be able to qualify for subsidies, which would probably reduce their annual premium by a whopping 8 to 11 percent.

If you own a small business then you need to take care of health care prudently so that you can save money as well as keep the employees happy about their health plan. So, one thing that you should keep in mind is that you shouldn't change your health insurance schemes each year so as to save up more money because this may translate into a frequent change of doctor for an employee and this is not something that any employee would appreciate. Instead set a 3 to 5 year plan and then refresh your position. This would keep the employees happy and you get to save a lot of hassle at the end of the year.

You should look into other options like Health Savings Account along with the normal insurance. This allows your employees to save up a lot of un-taxed money in a personal savings account available at most major banks, which can be used to pay for qualifying health care services with all the tax benefits. It is a great plan considering the fact that HSA is a sound financial mechanism for reaping all the benefits of a higher deductable plan and great thing about it is that such plans allow your employees to put in more money apart from the saved up premiums and get all the tax benefits on the added amount. As an employer you can choose to contribute towards HSA on behalf of your company's employee in place of the yearly bonus.

HRAs allow you to set up an even higher deductible policy by setting up an account to cover your employee's medical cost. It allows the employees to co-pay the deductibles along with their employer who pays through HRA. All these plans should help you create a stronger bond with your employees as well as save up money for your company's expansion.