As a business owner, you already wear many hats. From managing daily operations to leading your team, your responsibilities are never-ending. One area that often feels overwhelming is understanding your health insurance policy. You know it’s important — not just for compliance, but for the well-being of your employees and the success of your business. Yet, the terminology, choices, and fine print can feel like a foreign language.
At J.C. Lewis Insurance Services, we believe that with the right guidance, you can confidently navigate your health insurance options. This clarity will allow you to make informed decisions that support both your company’s goals and your employees’ needs.
Let’s break it down together.
Why Understanding Your Policy Matters
First, it’s important to recognize this simple truth: Your health insurance policy is more than a cost of doing business; it’s a cornerstone of your company culture and a safeguard for your employees.
Fully understanding your policy allows you to do a number of things:
- Ensure you’re providing valuable coverage that truly meets your team’s needs
- Avoid unexpected costs and administrative headaches
- Maximize the benefits available to your employees
- Use your benefits as a competitive advantage in Arizona’s growing job market
According to a 2023 Kaiser Family Foundation survey, 56% of small firms (3–199 workers) offer health benefits to at least some of their employees, and that number is growing as businesses realize the value health coverage brings to recruitment and retention.
Know the Basics: Key Terms You Need to Understand
Let’s start with the essentials. Understanding a few key terms will make your health insurance policy much clearer.
- Premium: This is the amount you and/or your employees pay for coverage, usually monthly.
- Deductible: The amount an employee must pay for healthcare services before the insurance kicks in.
- Copayment: A fixed amount paid by the insured for a covered service, typically at the time of service.
- Coinsurance: The percentage of costs that the insured shares with the insurance company after the deductible is met.
- Out-of-pocket maximum: The most an insured person will have to pay during a policy period before the insurer covers 100% of costs.
When you understand these terms, you can better evaluate the plans available and explain them clearly to your team.
Evaluate Your Network and Coverage Options
One of the most critical aspects of your policy is its network — the doctors, hospitals, and specialists who are covered under your plan. In Arizona, where healthcare networks can vary greatly between rural and urban areas, this is especially important.
When reviewing plans, consider these questions:
- Do the plans include reputable healthcare providers in your area?
- Will your employees have convenient access to primary care and specialists?
- Are telehealth services available as part of the plan?
According to a recent report by McKinsey & Company, telehealth utilization has stabilized at levels 38 times higher than pre-pandemic rates. Ensuring your plan includes virtual care options can add significant value for your team.
Understand Contribution Requirements and Tax Advantages
As a business owner, you’ll also need to understand your financial responsibilities. Typically, employers cover a portion of the monthly premium, and employees cover the rest. The good news is this: Your contributions may be tax-deductible, which can help offset costs.
Additionally, offering benefits like Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) allows both you and your employees to enjoy tax advantages. These accounts enable employees to set aside pre-tax dollars for medical expenses, reducing their taxable income.
At J.C. Lewis Insurance Services, we can walk you through these financial details so you can structure your offerings in a way that makes sense for your budget.
Stay Compliant with State and Federal Laws
Healthcare laws are constantly evolving, and staying compliant is crucial to protecting your business. Arizona follows federal requirements under the Affordable Care Act (ACA), meaning that if you have 50 or more full-time equivalent employees, you are required to provide health coverage.
Even if you run a smaller business, offering insurance can be a competitive advantage. Plus, programs like the Small Business Health Options Program (SHOP) may offer tax credits to eligible businesses that provide health coverage.
We’ll help you stay informed about regulations and opportunities so you can make smart, compliant decisions.
Partnering with Experts Simplifies the Process
Here’s the good news: you don’t have to navigate health insurance alone. At J.C. Lewis Insurance Services, we specialize in helping Arizona business owners like you understand their options and build customized plans that serve both their teams and their bottom lines.
Our role is to simplify the complex and give you peace of mind. We’ll answer your questions, compare plans, explain your coverage in plain language, and help you feel confident every step of the way.
Knowledge Builds Confidence
Understanding your health insurance policy empowers you to make informed choices for your business and your employees. Rather than feeling overwhelmed by jargon and paperwork, you’ll feel confident knowing you’re providing essential support for your team’s health and your company’s future.
When you’re ready to build a plan that fits your Arizona business, J.C. Lewis Insurance Services is here to help. Let’s take the guesswork out of health insurance and create a benefits package your team will value. Call us today at 707-978-2359 or visit jclis.com to get started.
