Offering group health insurance for employees is a decision that many business owners have made. There are plenty of reasons to offer it such as the fact it helps incentivize people to work for the company and stick around, it encourages the health and well-being of employees and it makes them feel as though they matter and they aren’t just a number. But as business owners also realize, not every group plan is priced the same and unless it’s affordable it’s not going to be useful.
If you’re looking to save money on group health insurance for your employees, here are some tips that can help.
Shop Around – Get Some Quotes
The first tip is really simple and that’s to get health insurance quotes from leading providers to give you an idea of where your current pricing stands. Maybe you’re paying much more than you need to be, but how will you know unless you gather quotes? Savings can be significant and yet not result in cuts to what is offered in the plan. That would make for a win-win situation for all involved.
Are You Sharing the Costs?
It may also be time to consider sharing the costs with employees. If your company is currently covering the entire cost of the plan, it may be time to make a change. It’s not unusual for employees to pay a portion, it just needs to be reasonable for what you’re asking them to contribute. If you go from nothing to a 50/50 split with them it can be a hard pill to swallow.
Instead, you can try the average contribution, which is around 9-10% that employees pay into the plan. This won’t be too much of a shock for employees yet it will result in big savings for the company when you factor in all the employees you are currently covering.
Voluntary Plans Can Save Money as Well
Did you know there are also voluntary plans that don’t result in any expense to you? This can be the case with vision, dental, and other health insurance. Give employees the option to choose what they want and how much they are willing to pay.
Take Advantage of Any Tax Credits
If you aren’t yet taking advantage of potential tax credits, now is the time to do so. Sure it may not seem like much, but remember it will add up.
Consider Combining Insurance Coverage
Some insurance providers will also offer a better rate if you combine coverage. In this case, you can look for a provider that offers health and workers’ compensation insurance. The package pricing can result in discounts, so be sure to inquire. If you don’t currently have the two types of coverage with the same provider, this may be the time to make a move.
Don’t Feel Trapped
The important thing to keep in mind is that you shouldn’t feel trapped. If your company is spending a small fortune on group health insurance for employees, there are solutions and ways to bring down the cost without eliminating the coverage.