Each
year, hundreds of business owners and human resource administrators
around the nation struggle to find affordable group health insurance
options for employees. Adding to this challenge are the upcoming changes
to Houston health insurance
benefits and premiums due to reform legislation. In order to overcome
these issues, benefits administrators are looking for creative ways to
provide affordable insurance to employees, while maintaining adequate
coverage.How to Provide Group Health Insurance That’s Cost Effective
The challenge that businesses face is finding insurance that is both affordable and provides the features and benefits that employees will use. Without buy-in from employees, the company cannot get discounted group rates, which causes premiums to skyrocket. Here are some tips for putting together low-cost insurance benefit plans that employees will participate in.
High Deductible Healthcare (HDHP) and Health Savings Arrangements (HSA)
One of the better ways to help reduce plan premiums, while still giving employees a valuable healthcare plan, is by offering at least one HDHP plan combined with an HSA program. Employees pay lower-than-average monthly premiums to maintain insurance coverage, while putting pre-tax dollars into a special account meant just for medical-related expenses.
Health Purchasing Cooperatives
In some metropolitan areas, small businesses and nonprofit organizations are coming together to create healthcare purchase cooperatives. These cooperatives give businesses more buying power, offering a larger number of low-cost group-discounted healthcare insurance plans with added perks like dental and vision insurance. These arrangements are also eligible for special small-business health- tax credits.
Flexible Spending Accounts (FSA)
Another option that can be combined with any group insurance plan is the FSA, which gives employees the option to put away pre-tax dollars for certain approved medical expenses. To give employees more for their money, the FSA can be accepted by healthcare vendor networks that accept cash-up-front payments at a reduced corporate rate for employees.
Corporate Wellness Programs and Nurse Hotlines
For a relatively low cost, any business can design a corporate wellness campaign that raises awareness about important health topics, and provide 24/7 access to telephone nurses. Studies have shown that when employees are supported by their employers in reducing health risk factors, such as obesity, stress, and chemical dependency, healthcare insurance claims are significantly reduced, which then lowers health insurance premiums.
Preventative vs. Reactive Care
While many group healthcare plans offer coverage for both preventative and urgent medical care, a few actually offer plan discounts for companies that promote preventive care. Creating a culture of corporate wellness and encouraging employees to get their annual physicals, age-appropriate tests, and ongoing prevention, can help to reduce group healthcare premiums.
To learn more about getting affordable healthcare insurance for your business, give ABM Insurance a call at 1-800-362-2809.
