Cheap health insurance coverage is unfathomable for many small businesses in Michigan. When companies calculate employee benefit costs, including the cost of Michigan health insurance, these additional expenditures add up to a substantial “hidden paycheck.” Most Michigan employees are unaware that their employee benefits merit extra expenses. On the contrary, an overwhelming number of small businesses are incognizant of how much these additional benefits actually cost.
Hidden paycheck items include the following:
• Michigan health insurance coverage
• Dental insurance
• Profit sharing
• Vacation time
• Sick day/pay
• Tuition reimbursement
• Life insurance
• Worker’ compensation
• Social security and Medicare benefits
The aforementioned benefits account for as much as 35 percent and more of employee compensation. Even more disconcerting, financial analysts contend that health insurance coverage is 50 percent of the hidden paycheck. With the impending increases for Michigan health insurance, small businesses could see premiums swell up to 20 percent by 2011.
In the interim, small businesses have a few options to save on medical insurance. Although, there are a few cheap health insurance policies in Michigan, the insurance providers are often not rated or even licensed, meaning that the risks are too great to chance for a small business. [see "Obtaining a Cheap Health Insurance Quote in Michigan"]
And with the Obama Health Plan two to three years in the making, small business owners have two options to reduce medical coverage costs:
• Consider policies with higher co-payments. For the company not issuing salary increases, the co-pay may pose a financial burden on the already cash strapped employee.
• Shop around for new small business health insurance coverage, carrying a higher deductible.
Michigan Health Insurance Coverage Tip: Be sure to obtain at least three health insurance quotes from companies with a minimum rating of B+ or higher. For example, Aetna, Anthem and UnitedHealthcare. In the interim, to simplify the process, consult a licensed insurance broker, who is affiliated with major insurance providers to compare for a no obligation health insurance quote.