Printer Friendly

Healthcare insurance.

Q

I have a home-based business, and I'm thinking about expanding and hiring a staff. I read that healthcare costs might sink my business. What should I do?

--D. McKay

Atlanta

A

Well, you're right. Health insurance costs are high and continue to rise (see Enterprise, August 2003). These costs are making it increasingly hard for small businesses to offer health insurance to their employees.

With that said, there are two main types of health insurance: health maintenance organizations (HMOs), which provide you and your employees with a list of physicians you can use, and preferred provider organizations (PPOs), which give members a choice of either in-network or out-of-network benefits.

Speak with other business owners about their providers and calculate healthcare expenses for a year to be sure that you can handle this from a cash-flow basis. Also, don't seek out the cheapest solution, but look for high-quality car. Opt for large deductible plans with high choice.

The good news is that the House Small Business Committee introduced the Self-Employed Health Care Affordability Act of 2003 (H.R. 1873) on April 30, which would allow self-employed business owners to deduct their health insurance costs when calculating payroll taxes (Social Security and Medicare). This would effectively reduce those costs by more than 15%.

In the meantime, visit the Employee Benefit Research Institute Website (www.ebri.org). The site offers information designed to advance the knowledge and understanding of employee benefits. Also, the Kaiser Family Foundation (www.kaisernetwork.org) helps business owners stay on top of policy changes about healthcare options.

--Alan Hughes

Mail your small business questions to Savvy Solutions, BLACK ENTERPRISE 130 Fifth Ave., New York, NY 10011 or send an e-mail to hughesa@blackenterprise.com.
COPYRIGHT 2003 Earl G. Graves Publishing Co., Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Savvy Solutions
Author:Hughes, Alan
Publication:Black Enterprise
Date:Sep 1, 2003
Words:286
Previous Article:Reaching for the stars: this celebrity stylist learned the hard lessons of business.
Next Article:Soft landing: James Garrett took a leap of faith and found security.


Related Articles
Progressive Targets Teens As Customers of Future.
Best's Rating Changes. (Ratings).
Best's Rating Changes.
BRIEFLY.
Technology aside: the state of healthcare.

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |