How Small Business Owners Can Ease Health Insurance Costs

There are about 28 million small businesses in the U.S., according to the 2012 Census. While your business is likely one of those that employ 50 or fewer employees and are exempt from the requirement to offer health insurance, insurance is still a big perk for retaining talent. Here are some tips for lowering your health insurance costs without negatively impacting health or morale of your workforce.

Shop Around

The Small Business Health Options Program (SHOP) is an online insurance marketplace facilitated by the government through the Affordable Care Act. This resource can help you hunt for competitive health insurance plans and rates that are affordable for your business. Using this marketplace also makes it easier to get the small business tax credits available for those who offer health insurance.  However, you may find that it’s more cost effective for employees to buy individual health insurance plans on the health exchange and then simply reimburse them for it. This offers the benefit not only of lower costs, but in giving employees more choice.


If retaining talent is your goal, then outsourcing some jobs can actually help you save money on overhead and use it to provide perks to retain your best employees. Outsourcing jobs like product assembly and packaging can slash the time and money you spend on training temporary staff and maintaining enough warehouse space to complete these activities. Visit a fulfillment company like Ohio Valley Goodwill Industries for a free tour, and talk to a representative to see how much you can save.

Encourage Wellness

Younger, healthier companies tend to get better premiums. While none of us are getting any younger, educating your employees on the benefits they have access to – such as no co-pays on preventative care – can encourage them to stay healthier. Education is a huge part of wellness, as is company culture. Fostering a company culture that makes wellness a priority could save you a mountain of insurance premiums in the long run.