For small business owners, there are multiple variables to consider when calculating the costs of health insurance benefits for employees. Small business health benefits are more directly affected by employee medical histories and age than larger companies and these factors have an impact on rates and deductibles for employee-insurance programs. Additional factors that affect the small business health insurance costs in Texas include gender and the company’s industry.
The following provide some of the basic factors that play into the cost of health insurance in Texas for small business:
Age: Older employees have a tendency to have more health problems and will cost an employer more. This is tough to swallow, especially since an employer can get punished for age discrimination, but the fact is that older employees cost more. Health insurance in Texas will cost more for older employees and this is usually true for other states as well.
Gender: Research supports the conclusion many insurers come to with regard to gender – women tend to visit their doctors more than men and have more medical needs. But, this is not without logic. There are several valid reasons women visit their doctors more often. The first is that younger women are in their childbearing years and often have children while they are covered by their health insurance in Texas. The second is that women generally are better at getting routine check-ups and get care when they feel ill. The gap narrows considerably as both genders age and women stay healthier and requires less medical care and men require more because they have not been as diligent at maintaining their health. Regardless of gender, health insurance in Texas continues to rise.
Number of Employees: Insurance providers factor in the number of employees needing health insurance in Texas when determining the company’s rates. Small businesses are usually offered plans tailored to fit their employees’ needs. This helps them to keep the rates down while still offering employees a plan that will suit their needs appropriately.
Geography: Depending on where people live, the cost for health insurance will vary. Even with health insurance in Texas, the cost will vary. The cost varies according to how much the cost of living is in their local area and to proximity of medical services. The majority of health insurance plans calculate rates by using the zip code of the county that they live in. When the zip code is used, the business address of the employer is factored in to that.
Industry: The small business’ industry is sometimes deemed more dangerous if its employees have a greater likelihood of being injured on the job. Chemical use and toxic materials handling are also considered because they can have a negative impact on an employee’s health over a period of months or years. For health insurance in Texas, insurers examine the impact these factors have on a small business’ employees and decide what to charge them. Because every business is different, their insurance premiums and coverage will vary based on the risk to their employees.