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Small Businesses: Is High-Deductible Health Insurance the Answer?

For many small business owners, it’s turning into the best, affordable answer:

Nearly a quarter of workers at companies with fewer than 200 workers were covered by such plans last year, compared with 17 percent of workers at larger firms.

Matt Grove and his wife, Annie, own a bagel business in Upstate New York. They stopped offering a traditional health plan to their 14 full-time employees last year, leaving in place only a plan with a $5,000 deductible and a health savings account. The change reduced the premiums significantly, enabling the company to trim the amount employees paid for coverage from $173 a month to $43. The Groves deposit about $200 annually into each worker’s HSA account to help cover their medical expenses.

The Groves have family coverage through the same plan. Even though Annie has a heart condition and the Groves have to pay for her regular echocardiogram and MRI tests out of pocket up to the $5,000 deductible, Matt Grove says it’s still cheaper than the $12,000 premium they paid annually for traditional coverage.

“We paid for all of that out of pocket, and we still saved money [last year],” he says. “It was crazy. The other insurance was just so expensive.”

Employee health-plan options shrinking to one with a high deductible

Are you a small business owner? Tell us about it in our discussion forum!

Related posts:

  1. Open Enrollment: Is High Deductible Health Insurance the Answer?
  2. Open Enrollment: Is Your Employer Pushing You To High-Deductible Health Insurance?
  3. High-Deductible Health Insurance Follow-up: High-Deductible Health Insurance and Health Savings Accounts
  4. Cost of Health Insurance Benefits Up 9%, Employees Turn to High-Deductible Plans
  5. Will Small Businesses Self-Insure to Save Money on Health Insurance?

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