As a veterinary practice owner, you want to take care of your employees and create a desirable work environment. When it comes to providing healthcare benefits to your employees, sometimes that can be difficult. A recent article in the American Economic Review found that small business have been overpaying for insurance—have you shopped around lately?
Researchers found that it’s often difficult for small businesses to comparison shop for benefits, which means competition is less about value and more about marketing. This phenomenon, known as “search friction,” increases the average health insurance premiums small businesses pay by 29 percent and can undermine the overall quality of health plans.
The good news: The market could shift soon. The researchers say that the health insurance exchanges mandated by healthcare reform law could go a long way toward helping small business owners make informed decisions—provided the exchanges are designed so shoppers can easily evaluate the value they should expect for various plans.