Running a small business can be difficult. Many different items compete for your attention and your money. Once you hire employees, you must make a number of decisions. One of the most controversial decisions is whether to offer health insurance.

The health care crisis has become a virtual epidemic. Pundits argue who should be responsible and what should be mandated by law. Malpractice insurance rates are skyrocketing, and those costs are passed on to the consumer. Employers often find themselves stuck between a rock and a hard place. Offering insurance can be prohibitively expensive. Yet not offering it is expensive too, in loss of productivity due to employee sick days, and even in loss of employees as they head to companies which do offer insurance plans.

In order to make an informed decision on whether to offer insurance, and which plans to offer, it is important to understand the terminology and what is involved. Group health insurance is available to employers with as few as two employees. Additional options become available as your company grows. Most employers pay a portion of the monthly premium. However, if money is tight, it is possible to pass along the full cost of coverage to your employees. In most cases, this will still represent a significant savings for your employees over buying insurance privately.

There are endless possibilities for the types of insurance you can provide. In order to determine what to provide, it is necessary to understand your employees and their individual needs. Do they have families that will also need coverage? Are they young and basically healthy? Do they have specific needs or concerns? Would they rather pay more for better coverage, or are they interested in basic coverage at the lowest possible price? If your company is small, you can simply discuss the issue with your employees directly. Otherwise, it might be smart to send out a survey to everyone, asking pointed questions to determine their needs. You can design a survey yourself or hire someone to do so.

Many employers decide to offer a range of insurance solutions. This is generally the best idea for larger companies that employ people with a wide range of needs. Speak with your insurance provider about this option. As with many other products, you generally receive the best prices when you buy insurance packages in bulk.

Once you have a general idea of the type of insurance you would like to provide, it is important to shop around to several different providers. Rates vary dramatically from company to company, and from plan to plan. Remain flexible, but keep your goals in mind.

Be sure to speak with a tax professional. If you pay a portion of your employees? premiums, you can generally take a tax deduction. However, tax law is extremely complicated, so it is always best to discuss the implications with a professional.

No matter what choices you make regarding which insurance products to offer, and whether to pay all or part of the premiums, offering health insurance in some form is generally the best option. Employees recognize the necessity of insurance coverage, and will gravitate toward companies that offer insurance. Additionally, the money invested will usually be made back in terms of productivity and diminished number of sick days. Finally, the good will and loyalty that will be generated in your employees is significant. With so many products on the market, it is easy to find one that will fit your budget and the needs of your employees.