How to Estimate Employee Health Insurance Cost in Colorado

Many small business owners in Colorado search for how to estimate employee health insurance costs. This post takes a quick look at a few key factors involved when calculating the cost of health insurance for Colorado businesses.

Calculating Employee Health Insurance Costs

As the Colorado workforce continues to change, the best employees look for positions that offer more than just a stable salary. With the cost of health care on the rise, employees want to work for companies that also provide some form of health insurance.

But with Colorado companies focusing on keeping costs low, how can you offer both competitive salaries and health benefits? It turns out; there is a way to make everyone happy.

What to Consider

Many elements go into the consideration of employee health insurance costs. First of which is the number of employees. Small businesses in Colorado can apply for group health insurance rates if there are at least two full-time employees.

Here are three more vital points we take into consideration when helping businesses choose and price the right group health insurance plan for their employees.

Health plan coverage
Plan structure
Network of providers

Cost Benefits of Health Insurance

The company and employees often share employee health insurance costs. By sharing the expense, you as the business owner can offer employees a way to get health insurance that is better and cheaper than the Affordable Care Act or on the private market.

Another way to lower employee health insurance costs is the possibility of lower payroll expenses. Colorado employees may be willing to take a slightly lesser salary if there are health benefits attached to the position.

Lower payroll expense, coupled with the cost-sharing mentioned above, can mean significant savings for your small business.

Questions to Ask a Group Health Insurance Broker

Honestly, the best way to estimate employee health insurance costs is by speaking with a group health insurance broker. A Colorado-based group health broker will provide you a free consultation during which you can determine reliable estimates for employee health insurance expenses.

When meeting with a group health insurance broker, there are a few questions you need to ask. Other than the three listed above (coverage, structure, providers) here are five more topics to discuss.

What are the premiums, deductibles, copays, and coinsurance?
What are the employee health insurance costs share percentages?
What are the coverages that your employees need based on your industry?
What choice will your Colorado employees have based on the plans available?
Which health insurance provider would you trust?

That last one may sound like a loaded question, but Colorado group health insurance brokers know the local health plan offerings inside and out and know which options would be right for your particular needs.

Once you have this information, you are then well prepared to make a decision that will make both you and your employees happy.

Is Employee Health Insurance Worth the Cost

In a small business when budgets are tight, some Colorado business owners may wonder if employee health insurance costs are worth the effort and the answer is a resounding yes! Having this benefit on hand for your employees is crucial to employee morale and helping you to keep your competitive edge.

There are ways you can help lower health insurance cost. One way is to offer health insurance benefits to full-time employees only. And don’t forget the advantage of being able to write off the cost of the employee health insurance cost you incur on your taxes.

The bottom line is that group health insurance is a great way to let your employees know that you value them and the time they put into helping you succeed. That is also why Preferred Insurance is here. Our goal is to help you pick the right policy for your Colorado small business, so give us a call and let us know what you need. We’d be happy to help.

Schedule a Free Consultation with a Group Health Insurance Expert

Contact us today to get a reliable quote for the employee health insurance cost for your Colorado small business. We can answer your questions and provide a variety of ways for you to lower the cost of offering employee health insurance benefits.