How to save your own small business health insurance
The important thing to remember is that there really is no affordable health care solution. Even if your initial premiums are reasonably low, they can increase significantly on the next renewal. So saving money on small business health insurance is about doing a lot of things to both get good rates and then maintain those rates…and it will take consistent effort from you, your employees, and from your insurance provider.
First, you can save money by reading lowercase letters. You need to know exactly what your plan does and does not cover. There are also cases of state-mandated coverage. For example, in states like Illinois, mammograms must be covered by your insurance. Plus, understanding the ins and outs of your plan will give you and your employees a better idea of how to manage your insurance.
After that, unnecessary benefits should disappear. After reading all about your plan, you’ll find coverage for the things you might not need. Eliminating these benefits can significantly reduce monthly health insurance premiums for small businesses. For example, eliminating brand name drug coverage can reduce costs by more than 25%.
The wellness program has worked wonders for small businesses. A wellness program is any program designed to promote a healthy lifestyle within an organization. Weight loss competitions benefit every participant. Add a financial incentive for more motivation. Stock water in the fridge at work and post about healthy lifestyle. Look online for calorie counting charts. Awareness motivates workers to make positive changes. Active, exercise- and diet-conscious employees have stronger immune systems, more vitality and more productive workplaces. They also don’t address many health issues. Reducing the number of doctor visits and hospital stays will help lower your annual premiums by demonstrating to your insurer that your business is low financial risk.
Raising your combined salary and deductible can go a long way towards reducing costs. For example, increasing copayments by just $10 saved companies up to 13% on their premiums. A higher discount will significantly reduce your monthly premium. To reduce the financial burden of high-deductible health plans (HDHPs), combine them with an HSA. Groups like this save business owners and employees money.
Consult the Nurses Helpline. The Nurse Hotline is a free 24/7 service. Staff can obtain medical advice from qualified registered nurses. This method has kept a large number of people from going to the emergency room and can also be used for preventive care. Insurance companies like Nationwide are proprietary, or you may need to buy from an outside provider.
Increase your group size to lower your monthly small business health insurance premiums. In a survey conducted by Health Insurance Plans of America, small businesses with ten or fewer people earned an average of forty-three dollars more than businesses with twenty-six to fifty employees. Check it out with other business owners or other members of business organizations. Some states also have small business groups and groups for this purpose. Check with your state Chamber of Commerce and Department of Insurance.
Beware of heavily discounted plans. First of all, many scammers are trying to get your money. They promise low rates and usually cover little or nothing. The internet is notorious for scammers trying to extort money from you. If you want to go to a company you don’t know, do your research. On the other hand, even reputable companies have problems. In an effort to gain market share, Blue Cross offered reduced rates to small businesses in 2008. In 2009, some of these same businesses were expected to see increases of up to 47% in their premiums. As Medicare costs rise, costs are shifted from insurance company to insurer, and discount plans quickly become p