Finding affordable NY Small Business Health Insurance is no easy task. Unfortunately it’s not getting any easier. Here are some tips to lower your company’s NY Small Business Health Insurance premiums.
1. Cost sharing- Cost sharing refers to the fact that NY Small Business Health Insurance plans have a deductible in for in-network benefits. Thus if you went to the hospital, you might have to pay $1,000 or more before the insurance kicks in. With cost sharing plans, many NY Small Business Health Insurance drug cards have a maximum benefit of $1,000. After the maximum benefit is reached, you may pay 50% of the cost of the prescriptions.
2. Split coverage- Many families are covered by the family plan through their company. With NY Small Business Health Insurance premiums on the rise, it’s time to think about splitting up the coverage. Start crunching numbers to see if you’d be better off with everyone on one plan or keeping one adult on the company’s NY Small Business Health Insurance plan, and buy a private family plan for the spouse and children.
3. Child Health Plus- While you are crunching numbers to see if you’d be better off with the company’s NY Small Business Health Insurance plan, consider Child Health Plus. Child Health Plus is run by the Department of Health. Depending on your family’s income, your child may be eligible to join either Child Health Plus A (formerly Children’s Medicaid) or Child Health Plus B. Keeping the employee and spouse on the employer’s NY Small Business Health Insurance plan and putting the children on Child Health Plus may save money. You should check out Child Health Plus to see if you qualify before terminating your NY Small Business Health Insurance plan.
4. 125 plan- With NY Small Business Health Insurance premiums on the rise, many businesses have no choice but to pass off some of the cost to the employees. Thus the business may pay for part of the premium, but the employee must pay for the rest. However, employees can pay the NY Small Business Health Insurance premiums using pre-tax dollars, just like a 401k. One of the most underrated and underused employee benefits available for small businesses today is the 125 or “cafeteria” plan. It allows employees to withhold a portion of their pre-tax salary to cover health insurance premiums, or child-care expenses. Since these benefits are free from federal and state income taxes, an employee’s taxable income is reduced. Since pre-tax benefits aren’t subject to federal social security withholding taxes, employers win by not having to pay FICA–or workers’ compensation premiums–on those dollars.
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