Insurance broker Bill Scuorzo is CEO and president of BCG Advisors based in Secaucus, New Jersey. As an insurance broker, Bill Scuorzo assists small businesses with finding appropriate health insurance for their employees. As insurance costs continue to creep up, the small businesses are challenged with finding ways to insure their employees.
Typically, a small business has fewer than 50 employees, and smaller businesses have fewer options simply because plans usually are in a one-size fits all format. Then, factor in the resources needed to hire a manager to initiate and oversee plan benefits for employees who might or might not remain with the company, and costs can escalate.
However, when looking for a plan for employees, small businesses have to consider a few factors. For example, location is a determinant in how much insurance costs, with plans in the Northeast costing more and plans in the South costing less. For example, a yearly plan in the Northeast would cost $7,001 for single coverage and $20,092 for family coverage, and a plan in the South is $6,372 for single coverage and $18, 038 for family coverage.
Then, businesses have to consider the types of insurance networks that are available before choosing one. The most common networks are the HMO (Health Maintenance Organization) and the PPO (Preferred Provider Organization), with the former being less expensive and the latter more expensive. POS (point-of-service) plans are moderately priced and offer a range of choices. Finally, an EPO (exclusive provider organization) is similar to an HMO but offers a better care-to-price ratio, and it offers special in-network pricing to members.
A final consideration for employers is related to how much of the premium they want to pay. If employees pay more out-of-pocket for healthcare, then employer contributions will be lower. Businesses really have to take into consideration how employee productivity translates into the bottom line of the business before deciding on their contribution (which can done through business analytics).
Bill Scuorzo 