Many Small Business Employees Report Wanting Health Insurance, And New Options Could Make That Easier For Employers

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Small businesses employ almost half of the U.S. workforce, so their decision to offer healthcare to their employees can play a significant role in how individuals and families nationwide receive their healthcare. 

A total of 84% of 2,000 small-business employees surveyed for an employee benefits study found that health insurance is at the top of their most-desired work benefit list.

Small businesses with under 50 employees, which aren’t required to provide their employees healthcare, often say cost is the most significant factor in making that decision. 

According to the Small Business Association (SBA), less than half of small businesses with three to nine workers offer their employees health insurance benefits, while 71% of those with 10-24 employees provide healthcare. The cost of replacing employees that leave for benefits elsewhere is significant, especially for a small business. An hourly position can cost an average of $1,500 to replace. A technical salaried position can cost as much as 1.5-2x the annual salary. 

The SBA found that when a more significant number of people pay for insurance in a business group plan, average prices become more stable and insurance companies shave more resources to draw from when someone needs medical care.  

According to a recent eHealth study, factors other than cost are important for businesses making the health insurance decision, including tax incentives, recruiting, hiring and retention, productivity, and fewer days off because of sickness.  

Traditional, fully funded plans from major national players such as UnitedHealth Group Inc. UNH, Anthem Inc. ANTM, and its Blue Cross Blue Shield brand are plentiful, but in many cases can be cost-prohibitive for a small business.  

But a new healthcare option is reportedly grabbing attention. Sana Benefits offers its own version of PPO Plus that allows employees to see their preferred doctors and not pay out-of-network fees. The company says it saves its members up to 20% over legacy carriers’ plans. 

Sana states that while many healthcare carriers use network contracts that reportedly bill many times higher than Medicare rates and can result in large bills for patients, Sana uses its own version of reference-based pricing (RBP). The company pays providers a set percentage on top of Medicare rates, helping keep costs low for employers.

As pharmaceutical costs continue to increase, Sana is also reducing the cost of prescriptions through it’s transparent pharmacy benefits manager. 

Sana is trying to make the employee healthcare decision easier for small-business owners by offering plans that can handle everything from primary care and maternity to mental health care.

Launched in 2017, Sana serves thousands of members across the country, and 35% of businesses that sign up with Sana are offering health insurance to employees for the first time. 

For more information about Sana Benefits, visit here

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by Ernesto Eslava on Pixabay 

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