Mastering Open Enrollment: Essential Tips for Small Business Owners to Save on Health Insurance in 2025
If you’re a small business owner looking to save on healthcare, here are some expert tips to keep in mind before and during open enrollment.
1. Don’t Forget Open Enrollment Deadlines!
Open enrollment typically runs from November 1 to January 15 in most states, with the deadline for coverage starting January 1, 2025, set for December 15, 2024. Regardless of your current health insurance plan, it’s vital for business owners to be aware of these deadlines.
Irish notes, “Missing these deadlines can make it very difficult to qualify for health insurance for the remainder of the year. At Catch, we often receive calls from those looking for health insurance well after the deadlines, and unfortunately, options are very limited at that point. Once open enrollment ends, you’ll need a qualifying life event, like getting married, to qualify for health insurance.”
Open enrollment is also a great opportunity to find the right financial tools for your business. Our experts have curated the best credit cards for small business owners, helping you maximize rewards, manage expenses, and stay on top of your cash flow. Check out our top recommendations to find the card that best suits your business needs.
2. Check Your Mail (or Contact Your Insurance Company) Before Open Enrollment
Before enrollment begins, make sure to check your mail for important documents from your insurance provider. You may receive a letter outlining options to maintain your current plan, switch to a new plan with your existing insurer, or choose an entirely new insurance company.
This happened to me; my health insurance provider no longer offers the plan I used in 2024, but I can select a similar (lower premium) plan for 2025. Checking your mail ensures you understand your options ahead of time.
3. Save Money with Premium Tax Credits (PTC)
Many small business owners believe that health insurance premiums will be prohibitively expensive. Some even hesitate to leave corporate jobs to start their own businesses due to concerns about high health insurance costs.
Through HealthCare.gov, many small business owners qualify for premium tax credits (PTC), which can significantly reduce their health insurance premiums. Depending on your income, you may be able to obtain health insurance at a lower cost than expected! In 2024, nearly 80% of HealthCare.gov customers paid $10 or less per month for health insurance after PTC subsidies.
Irish explains, “The number one complaint we hear from people shopping for health insurance is the price. We always recommend checking if you qualify for savings, and at Catch, we’ve created tools to help our members easily access those savings when applying for health coverage.”
4. Consider HDHP vs. High-Premium Plans
Small business owners can choose between high-premium plans with more generous coverage or lower-premium plans with higher deductibles and out-of-pocket costs. Depending on your overall health, age, risk factors, and lifestyle, selecting a high-deductible health plan (HDHP) might be a good option.
Irish advises, “If you anticipate needing less healthcare, you might consider a plan with a lower monthly premium but higher deductibles. In other words, pay more out-of-pocket if you use it. Conversely, if you expect to use more care, you might prefer high-premium but lower-deductible plans. This means you’ll pay more upfront, but your out-of-pocket costs will be lower when you use care.”
Choosing an HDHP can benefit you in two ways:
- It offers lower monthly premiums, reducing cash flow pressure on your business.
- It may qualify you to open a Health Savings Account (HSA), allowing you to set aside tax-deductible dollars for healthcare or to save and invest for your future retirement.
5. Make Your First Premium Payment
Even after signing up for health insurance during open enrollment, your coverage isn’t “official” until you make your first premium payment upfront.
Irish states, “Don’t forget to pay your first month’s premium, also known as the ‘binder’ payment. As a small business owner, unlike obtaining insurance through a large corporate employer, you’re directly responsible for paying your premium to your insurance carrier. You must pay your first month’s premium before the start date of your health insurance plan; otherwise, your coverage may not take effect.”
Author’s Advice: I signed up for health insurance through HealthCare.gov and made my first premium payment online. However, I also called my health insurance company to confirm that my binder payment had been successfully processed.
Open enrollment for 2025 runs from November 1, 2024, to January 15, 2025. Explore HealthCare.gov for affordable health insurance tailored to your needs, or utilize services like Catch.co. Choosing the right health insurance can keep more cash in your business bank account.
