What is the Cost of Small Business Health Insurance in NY?

With rising premiums and an confusing policy language, workers and employers alike struggle to find health insurance they can understand and afford.

As a small business owner you qualify to get small business health insurance (aka small group insurance), which is often less expensive than individual health insurance. If you’ve decided that you want to enroll in a small business health insurance plan, you may be wondering how much this will cost for you. Although plan prices are different based on the benefits and services they come with, we have prepared the following Q& A to help you get a better understanding of the cost of small business health insurance in New York.

What are the costs associated with a small business health insurance plan in NY?

The cost of a small business health insurance plan will depend on a number of different factors such as network size, deductibles and co-payments, and maximum out of pocket costs.

• A premium is a regular payment usually made once a month that policyholders must pay every month to remain enrolled in health insurance.
• A deductible is a sum of money that a policyholder must pay out of pocket before his or her insurance will kick in and start contributing to medical costs.
• A co-payment is a fixed out-of-pocket amount paid by an insured for covered services. Insurance providers often charge co-pays for services such as doctor visits or prescriptions drugs. Co-pays are a specified dollar amount rather than a percentage of the bill, and they usually paid at the time of service.
• A network is a list of doctors, hospitals, and other providers that you can access to receive covered health benefits. The amount of providers in a given network and the quality of the hospitals and specialists will determine the price you pay for that insurance. The larger the choice of doctors and hospitals, the higher the premium all else being equal.

So, what is the best combination of deductible, copays, and network access? We always say, tell me how you will get sick next year, and we can figure out the best plan for you! Of course that is impossible to know, so it makes sense to seek the help of a licensed NY health insurance broker who can help narrow down your choices based on your past and possible future needs.

Why is the average cost of small business health insurance lower than that of individual coverage?

This is due in part to risk pool advantage, which means that the larger the group, the more spread out the costs are to provide coverage for medical care. In a group all members are enrolled with the same plan and the risk is spread out, whereas an individual can pick and choose the benefits that fit closer to their expected claims experience. An example would be someone with Cancer would choose a high benefit plan to limit their expected claim exposure, whereas in a group setting the group as a whole will have those with and without cancer…better spreading out the risk overall.

How much does each person pay for small group health insurance?

Although the cost of small business health insurance is generally lower overall, the specific financial details of a small group health insurance plan vary based on a number of factors. Therefore, when calculating the cost of NY small business health insurance for your company, take into account:

• Plan Selection– The cost of an employee’s small business health insurance varies mostly based on the carrier, network and plan choice.
• Employer contributions– In a small business health insurance plan, employers can typically split the cost of small business health insurance with the employee. The employer is not required to contribute to am employee’s premium.

Is your small business eligible? Call us today to find out immediately 631-207-1800.

Are you a sole proprietor or the only enrolling member of your group? Read our Owner Only Guidelines

Still have questions? Visit our Frequently Asked Questions page

If you are interested in offering small business health insurance benefits for your company, Peak Advisors can help you manage the process and guide you to plans that fit your company’s needs. Please email, call us at 631-207-1800 or complete our online request for more information.