COBRA Gives Small Firms a Break

Small remodeling companies that hire people formerly employed by larger firms might do well to look at an unusual way to cut health insurance costs.

Large employers usually have lower rates for insurance premiums than small companies have, so consider asking these new employees to maintain any COBRA coverage from the old job for as long as possible (18 months from the date they left their former company, in most cases).

Even if you reimburse employees for the cost of the premiums, it most likely will be less money -- as much as 20% less -- than you would have to pay under your company's own plan, according to 301 Great Management Ideas, published by Inc. magazine.