Let’s set the scene – you are an entrepreneur who recently incorporated a rapidly growing business. You have a spouse who isn’t working and you are about to have your first child. Currently you have no staff, but your business is expanding rapidly and you need to hire some employees.
As you start to write the job posting, you suddenly realize that any suitable candidate is going to want medical and dental coverage. You have been so busy dealing with the increase in customer demand that you haven’t had time to think about this for either yourself or your future employees.
So What Are Your Options?
One option is to look at traditional group insurance plans through an organization such as Blue Cross or other insurance companies. However, such plans may require a substantial premium to provide the level of coverage desired.
Unless you are an extremely large employer that allows employees to pick and choose, group insurance generally provides a set list of what is covered at a fixed cost. In such a situation there will always be employees who are not satisfied with either the coverage (i.e. not broad enough) or the cost (i.e. they are paying premiums for coverage they do not require).
Another option is to look at a Private Health Services Plan (“PHSP”). A PHSP can alleviate some of the issues encountered by a traditional group insurance plan.
For example, a PSHP can allow employees to pick and choose the medical services they require while offering the business a certainty as to its costs. They are straightforward and easy to understand for both the employees and the employer.
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