Learn 7 Ways to Save Money on Small Business Health Insurance

When it comes to health insurance, we can all agree on one thing: it’s expensive. According to the 2019 Kaiser Family Foundation Employer Health Benefits Survey, small company employers paid an average of 82% of an individual plan’s premium ($5,658) and 70% of a family plan’s premium ($14,035) per employee.

Even with large company premium contributions, health insurance can be prohibitively expensive for employees. It’s natural for a business owner to be conflicted about providing employee insurance. You have a budget to monitor, and health benefits are a major expense.

At the same time, you are concerned about your employees’ health and want them to be safe in the event of a medical emergency. Is it possible to provide health benefits without going broke? With a little foresight and strategy, you can keep expenses down for yourself and your employees while also ensuring that everyone is protected.

Here are 7 practical strategies for saving money on small company health insurance:

Saving money for your company.

Here are a few suggestions for how to save money on health insurance while still providing a vital benefit to employees.

Tip 1: Do some comparison shopping.

Every year, the cost of health insurance fluctuates. It’s usually a good idea to look into what plans are available in your area for the next coverage period.

You may be able to save money by doing the following:

• Changing health insurance providers. Some insurers may raise their premiums significantly year over year, while others may raise them only slightly (or even decrease their rates).

• Moving to a different type of health plan (like an EPO or HMO, which are usually cheaper than PPOs). EPOs have a carefully controlled network of doctors, but they do not require referrals. HMOs are often based on a single medical system and necessitate referrals to specialists. Both types of plans are able to create cost savings with doctors and medical organizations – and pass along those savings to you.

• Choose a unique set of plan levels. Additional options are not necessarily beneficial; studies have shown that when deciding between numerous plans, employees frequently over-insure themselves.

Tip 2: Provide an HSA-compliant plan

A Health Savings Account (HSA) is a long-term account that an employee establishes to pay for medical bills. HSAs can only be utilized with HSA-compatible insurance plans, which often have high yearly deductibles and low monthly rates.

These plans can help you save money on premiums while still offering health insurance to your employees. Please keep in mind that coverage is subject to plan deductibles, co-payments, and coinsurance. Details can be found in your plan paperwork.