There are three main types of Texas health insurance plans: managed care, preferred provider and fee-for-service.  Each plan can offer good benefits to your employees and is likely an available option with most major health carriers.  Talk to your employees about their health needs, and whether they’ll require coverage for specific conditions or for family members.  Coverage options, costs and flexibility to choose preferred doctors and hospitals will help determine which plan is best.

When choosing a Texas health insurance carrier, select a company that receives positive feedback from customers and exhibits good customer service as you inquire about its plans.  A sound financial rating is also important.  Financial evaluations by third parties like A.M. Best can help you determine the ability of an insurer to fulfill its obligations to your company.  If overwhelmed by the search for the right insurance provider, consider using a Texas health insurance broker to help you navigate the maze of plans and options.

Once you’ve selected a health insurance provider and plan for your small business, educate your employees on ways to keep costs down.  Plans with higher deductibles and no copayments will generally boast lower premiums, but that means more out of pocket expenses for employees.  This is a great option for healthy workers that don’t require regular doctor visits and prescriptions.  Also, creating a health-conscious work environment is a terrific preventative measure.  If possible, provide healthy snacks and lunches, or offer incentives for joining a gym.  Healthy living can go a long way to reducing health care costs for individuals and, in turn, the company.

When considering a Texas health insurance plan for your small business, it’s important to note that rates are not governed solely by the benefits and coverage options of the plan itself.  Instead, carriers calculate rates according to the following case characteristics:

Age of employees – Older employees can reasonably be expected to have more expensive and more frequent health-related claims; generally, the older your employees, the more your plan will cost.

Gender – Females typically incur higher medical costs than males at younger ages, while males incur higher costs in their later years.  If your small business has a young, female workforce, or one that is older and predominately male, expect to pay higher premiums.

Number of plan participants – As the amount of plan participants increases, the administrative cost per person decreases.

Industry – Certain factors, including hazardous working conditions, subject small businesses to higher costs.  And even high employee turnover can result in a pricier plan due to higher administrative costs for the carrier.

Geographic area – Health care costs vary by region due to differences in cost of living, medical practices and the amount of medical competition in the area.

With the above factors affecting health insurance rates, premiums, deductibles and copayments will vary significantly from plan to plan.  To ensure that you get the best plan at the best price for your small business, it’s smart to do extensive research when shopping for a Texas health insurance quote.  The following factors should be helpful when considering coverage options:

Extent of coverage – Be sure you understand the full extent of each plan’s coverage options when comparing plans and rates so there’s no confusion as to the benefits your employees will and will not receive.

Premiums – Plans with higher deductibles and copayments will generally have lower premiums, but that means more out of pocket expenses for employees.

Financial Rating – When trusting your employees’ health to an insurance company, make sure it can fulfill the financial obligations required under the plan.  You can learn a company’s financial rating and the frequency of consumer complaints filed against a company by calling the Texas Department of Insurance Consumer Help Line.

Cooperatives – Look into joining a cooperative.  Cooperatives are groups of employers with similar health care needs who join together to negotiate discounted rates for shared plans.

For even more information on providing health coverage for your small business, visit the Texas Department of Insurance.