Employee Benefits Plans for Small Businesses in Texas

Small business owners know the value of great employees. In a competitive environment, attracting and keeping the best and the brightest can be a challenge. A good benefits package can be a game changer for talent acquisition. Learn more here about Employee Benefit Plans for Small Businesses in Texas.

According to a Glassdoor.com survey, when it comes to job perks, employees value benefits over pay increases. The survey reveals that approximately 79 percent of employees preferred benefits-related perks, with health care insurance topping the list.

Offering health insurance with options for dental, vision, life and disability benefits may very well help you attract and retain top employees.

Here’s what to you need to know about offering Employee Benefit Plans for Small Businesses in Texas.

Health Insurance Benefits

In Texas, a small business is one “with two to 50 employees, regardless of how many hours they work,” according to the Texas Department of Insurance. If your business meets this definition, there are several routes to take to deliver on health insurance benefits.

Working with a qualified insurance broker to evaluate options from public or private exchanges, cooperatives, insurance companies or other marketplaces is recommended. Coverage offered must meet Affordable Care Act requirements and finding the best products on your own can be overwhelming.

Health Insurance Benefits

In Texas, a small business is one “with two to 50 employees, regardless of how many hours they work,” according to the Texas Department of Insurance. If your business meets this definition, there are several routes to take to deliver on health insurance benefits.

Working with a qualified insurance broker to evaluate options from public or private exchanges, cooperatives, insurance companies or other marketplaces is recommended. Coverage offered must meet Affordable Care Act requirements and finding the best products on your own can be overwhelming.

Texas and the ACA Factor

When offering health insurance, ACA requires coverage availability for “all employees working 30 hours or more per week and their dependents,” per the TDI. Also, health coverage must comply with ACA benefit standards, including provisions for outpatient and emergency care, hospitalization, maternity care, prescription drugs, and pediatric dental and vision care.

ACA Premium Plans for Your Small Business Budget

Texas small businesses have several premium plans to consider under ACA for health benefits. These plans (Bronze, Silver, Gold or Platinum) let you choose from high to low premium costs based on budget needs.

The Bronze plan is on the lower end of costs. Premiums are based on the health insurance provider paying around 60 percent of health care costs. Your employees, however, will pay more in deductibles, co-payments and other out-of-pocket expenses.

Platinum plan premiums are the higher than all other plans, but cost-sharing is lower for employees. Premiums for Silver and Gold plans fall between the Bronze and Platinum plans.

Voluntary Insurance Benefits

In addition to primary health insurance, there are other benefits your employees may want and need to help cover the cost of an unexpected illness, injury or life event. For a small business, these products can be cost prohibitive unless offered as voluntary.

Voluntary insurance is coverage that is not mandated or required by ACA or any other entity. When offered, employees are free to participate or not. According to the National Association of Health Underwriters, types of coverage, in addition to or in lieu of a traditional benefits, include:

  • Accident Insurance
  • Critical Illness
  • Dental
  • Life Insurance (Term, Whole)
  • Short-term or Long-term Disability
  • Vision

Premiums for Voluntary Benefits

Premiums for voluntary services are typically paid by employees, who receive cash benefits to help pay covered expenses. However, your small business can help personnel save money by working with a provider to lower costs with group rates.

Even though voluntary insurance is optional and paid by employees, a recent study stated that “employees who are offered and enrolled in voluntary insurance policies, report increased job satisfaction and believe they’re more financially prepared to cope with unexpected out-of-pocket medical expenses.” This result underscores the need to consider voluntary insurance benefits.

What are the next steps?

Employee Benefits for Small Businesses in Texas

Making the Decision

The decision to provide benefits to your small business employees is not to be taken lightly. When exploring options, it is important to connect with a professional who can help you understand and evaluate the best possible plans and costs for your particular need. Make sure to read our page about Employee Benefits on our site, which will give you some detailed information about Employee Benefits Plans for Small Businesses in Texas.

In Texas, small businesses can contact Shelly Alvarez Insurance with confidence. As a reputable broker who knows the benefits process, Shelly Alvarez has the experience and expertise to guide you all the way. Please contact us today for additional information.