Association Plans for Businesses

Finding affordable health insurance plans for small businesses can be difficult. Depending on the average age of the employees, a small business might end up with a monthly rate that really cuts into your budget. You may end up with the choice of keeping the plan or terminating it to save money. This usually presents a problem since many employees expect health insurance in their benefits package. This is where an association plan for businesses may solve this issue. Association plans are discounted health insurance policies that are offered exclusively to small businesses.

How to Qualify

An association plan is a group of similar small businesses. Some examples are construction, medical, dental, hotel and lodging as well as others. If your business is part of a defined field of work, you may qualify for a lower costing plan. Your business will generally need to join some sort of industry-related group to gain access to these plans. Some examples of these are BANN and NBA. Both of these construction associations allow access to discounted group plans. You do not need to currently be part of these associations to see prices for these options. A health insurance broker can put together your options for no cost or added fees.

How It Works

The reason these plans are discounted is due to small businesses grouping together. Generally, the larger the group gets then the lower the premiums go. Since multiple small businesses are working together to form one larger group, the rates get less expensive. These plans operate in an almost identical manner as regular group health insurance plans. The plans are also regulated and offered by qualified health insurance carriers. It is important to keep an eye for gimmick policies that try to pretend to be health insurance for less money. Association plans are not gimmicks and will cover your employees as well as traditional small group plans.