7 Ways to Save Money on Small Business Health Insurance
Updated: Nov 20, 2021
Want to spend less on health insurance for your small business? Here are 7 things you can do to reduce the cost of health insurance for your employees without compromising the quality of your benefits offerings.
1. Keep searching. Remember that health insurance prices can change every year, and you can use this as an advantage. You can find a health insurer with a modest increase in their rates compared to others. Oscar is an excellent choice for small businesses that want to give employees health insurance that doesn't cost a fortune. EPOs (Exclusive Provider Organization), for example, are cheaper than PPOs (Preferred Provider Organization). Remember, employees tend to over-insure themselves when they have to choose between several plans, so giving them more options to choose from is not always helpful.
2. Set up Health Savings Accounts (HSA). These long-term accounts are set up for employees to pay for their medical expenses. But, they'll need specific HSA-compatible insurance plans. These plans help in saving premium contributions and still give health coverage to your employees.
3. Clarify plan options. Give your employees a list of clear plan options to tailor your insurance coverage to their needs. Ideally, the insurance plan should have wellness rewards, low-cost prescriptions, free annual physicals, flu shots, and services that keep them healthier and happier. These benefits will positively impact your employees' well-being without hurting your profits. Supplying your staff with the health benefits that matter to them protects your budget.
4. Teach your employees about health insurance. A little healthcare knowledge goes a long way by lowering company costs and increasing your employees' savings. Get easy-to-understand materials from your insurer, send out monthly emails containing educational content on health insurance, put up fliers regarding vaccines and health seminars, or conduct fun stress-buster activities.
5. Use Flexible Spending Accounts (FSA). FSAs allow employees to set aside pre-tax money from their paycheck and decide what health care bills they want to pay from their account. FSAs are optional, so let your team know they can sign up during open enrollment and ensure they use their account before it expires at the end of the plan year.
6. Offer virtual care solutions. Telemedicine is the new black, offering a cheap alternative to traditional health plans. All your staff needs is a phone or an Internet-connected device to virtually talk to a doctor instead of visiting a clinic. It is efficient and saves money and time otherwise spent traveling to a doctor's appointment or waiting for healthcare services.
7. Invest in wellness plans. Wellness plans benefit both employees and employers. These plans can include anything from anger management to losing weight. The best part of a wellness plan is that you have complete control over it. You decide the budget, the activities, the time, and shape the type of plan based on the health concerns of your employees. You can also outsource wellness programs to companies like Aetna that specialize in healthcare and wellness.