Small employer health insurance benefits are a big deal.

Small businesses are looking for affordable health insurance for themselves and their employees, but at what cost? By opting out of the health insurance market, businesses owners and individuals may find themselves digging deeper in their pockets when an unexpected injury or illness occurs. If the cost of health insurance is a barrier, consider this--health plans are offering some of the widest choices of plans ever in the market. You can control out-of-pocket costs and maintain coverage adequate for your needs by reviewing your options. Below are some steps you can take to help secure affordable health insurance:

Remain Insured. Going uninsured is an expensive alternative. An accident or unexpected illness comes with an enormous price tag-a typical hospital stay (about four days and two follow up visits) is now estimated at $29,000. Those who do have insurance end up paying higher premiums, as health care providers pass along some of the cost of treating the uninsured. Taxpayers also pick up some of the bill.

Shop around. You can help dilute your risk and satisfy employee needs by choosing from several plans with varying benefit features and price points. A 25-year-old who rarely gets ill may benefit from a high-deductible plan that would cover their needs once they're admitted to a hospital. A 45-year with two small children may require a plan that covers frequent visits to their doctor's office.

Promote healthy employees. Business owners should be proactive in promoting the health of employees. Most health plans offer wellness programs that offer discounts on health-related products and services. For those employees with chronic illnesses such as diabetes, a disease management program takes a proactive and preventative approach toward treatment. The savings will eventually be passed back to policyholders-including the small business owner.

Select from a broad range of benefit choices currently available. Small employers have a variety of ways to offer health care coverage that were not available just a few years ago. As opposed to more traditional insurance options, defined contribution plans allow the employer to fix a dollar amount that they can afford to spend, budgeting their health care expenses and forecasting for the future.

Explore financing options. Employers and employees may take advantage of a Section 125 plan. The IRS-sanctioned plan permits employees to purchase coverage with pre-tax dollars, making the premiums more affordable. Another option is a Medical Savings Account, allowing them to save pre-tax dollars to meet the costs of a lower-cost, higher-deductible policy.

Encourage frugal pharmacy practices. According to Center for Studying Health System Change, prescription drugs were a key driver in escalating health care spending at 13.2 percent in 2002, compared to 11 percent in 1996. You cannot tell your employees or their physicians what drugs they may employ for treatment but encouraging them to consider generics or even over-the-counter alternatives can make a big difference. Over time, such savings will translate into lower premiums.

Small business owners want health care coverage to protect themselves, their employees and their families. There are a number of programs available to help them to accomplish this goal, no matter what their budget.

Contributed by Brian Sassi, general manager of small group business at Blue Crass of California.