Should You Consider An Association Health Plan For Your Small Business?

Should You Consider An Association Health Plan For Your Small Business?

The Hartford

Are you trying to find a more affordable alternative to your business’s existing health plan? As the price of health insurance continues to rise, association health plans offer small business owners the opportunity to provide their employees with quality healthcare benefits at discounted premiums. So, what does a small business need to do in order to qualify for one of these plans? Gene Marks and Elizabeth Larkin explain the process of applying for an association health plan.

Executive Summary

1:03—Today’s Topic: Are Association Health Plans Right For My Business?

1:25—In order to qualify for an association health plan, you first need to form a buying group of 100 people, either within your small business or externally with other related businesses. Once you assemble your association, you can approach one of the major health insurance companies and apply for discounted premiums.

3:02—This plan does not exclude pre-existing benefits and it’s cost remains the same for all participants regardless of health history or salary.

3:44—Unfortunately, one of the risks of the association health plan is that it has the potential to be overturned within the next 2 years. Another drawback is that the application process takes a lot of work.

5:24—The best places to consult for further information about existing health association plans are your Chamber of Commerce and your Industry Association.

5:59—Because this health plan excludes several benefits, it would be wise for business owners to retain their original health plan as an alternative.

7:28—Gene discusses how unguarded optimism can negatively impact your business prospects and encourages aspiring entrepreneurs to be realistic in their expectations.

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