Most small businesses want to offer employee health insurance, but they also need to save money whenever possible. What changes can you make to your employee health plan that may help you accomplish both these goals? Here are five options for any size business.
1. Shop Around
Frist and foremost, be sure you schedule time to shop around for plans before you simply accept a rate increase. Different companies offer different plans, different prices, and different programs that may help keep costs under control. But if you don't shop around every year — even if it's inconvenient — you will be severely limited on how to manage costs. And you may end up slashing the wrong things in response.
2. Reconsider Tiers
How many tiers of insurance coverage do you offer employees? When an employee is offered multiple levels of coverage — such as bronze, silver, gold, and platinum — they often opt for ones that appear to provide more coverage. However, these nearly always come with a higher price tag for the company. And in many cases, lower- or mid-level tiers often provide similar coverage and out-of-pocket costs when analyzed.
3. Offer HSA Options
Health Savings Accounts are a good way for everyone to save some money. Under this arrangement, the employee can put away tax-free money towards present and future health care costs in exchange for a higher deductible. How does this help the employer? Higher deductible plans generally come with a lower price tag for both employee and employer.
4. Consider a New Type
Health insurance comes in several types, the most common of which are HMOs (health maintenance organizations), EPOs (exclusive provider organizations), and PPOs (preferred provider organizations). In general, an EPO or HMO plan is less expensive than a PPO. That's less money you will pay in subsidies.
5. Encourage Wellness
The amount you pay in premiums is linked to the amount your insurance carrier pays out in expenses. So, encouraging wellness and health among employees helps reduce your own costs. This may come in the form of wellness programs with incentives, an improved environment for physical and mental health, or encouraging employees to use low-cost preventative health care.
Where to Learn More
Want more suggestions for saving money as an employer? Start by meeting with a business health insurance provider in your area today. They will help you assess your current options, shop for better deals, and find out what your employees want you to focus on. Call today to make an appointment.Share
29 June 2021
Ten years ago, I married my best friend in a beautiful, intimate ceremony. My husband and I have been nearly inseparable and we’ve enjoyed this special time in our lives where it has been just the two of us. However, we’re finally ready to have a baby. Because I only work part-time, my husband is the primary financial provider in the family. If something ever happened to him, I wouldn’t be able to instantly support myself and a child. Because my husband worries about an uncertain future, he is considering purchasing a larger life insurance policy. On this blog, I hope you will discover the best types of life insurance policies for young parents to invest in. Enjoy!