Providing health insurance policy to employees is the key for employee retention in a company. But at the same time, the employer must be careful about the money it costs to the company. When you are running a small business, there is always a delicate balance between providing health insurance policy and keeping your costs manageable. How can you manage better on cost while still doing right by your employees? Here are a few things that you should consider.
Offer a Plan with a Health Savings Account (HSA)
Health Savings Account (HSA) is an account that is set up by employees to pay for their health-related expenses. HSAs are gaining popularity in the market because they are available only with specific HSA-compatible health insurance plans that usually have high annual deductibles and lower monthly premiums. These accounts get contributed by both employee and an employer, and an HSA moves with employees if they switch jobs. This is also to consider that the high-deductible coverage can mean more out-of-pocket costs for employees, but the premium cost born by the employer gets reduced. HSA helps an employee to cover the additional expenses.
This approach helps keep spending in check because it puts the onus on the user to think about the cost. HSAs allow individuals with high-deductible health insurance plans to use employee pretax money to pay for uncovered medical costs and carry over unused funds to future years.
Keep Employees Healthy
Both employers and employees are benefitted when everyone in the company stays healthy. This is the reason most of the company looks for opportunities to invest in wellness programs. Wellness programs cover everything from quitting smoking, losing weight, staying active in managing stress. Wellness programs help in lowering a company’s insurance costs by creating more health awareness among employees and thus encourage them to take better care of themselves. Encourage your employees to adopt healthy habits to maintain a healthier workplace. So, if your employee health insurance bills are spiraling out of hand, take back control by looking at ways to make your workforce healthier.
Evaluate Policies Annually
As tempting as it may be to leap onto the next new task, it’s in your best interest to sit down and methodically review it. Don’t hesitate to give your agent a call and ask questions about changes in your business, adjustments to your business model, or even rate changes if you see them. You should also discuss with employees the benefits that they want to get covered in the policy. Based on the benefits, you should ask your agent to modify a policy that can cost you less. Also, you should keep updating your records with the agent when employees enter or leave your employ. You should let your health insurance company know as promptly as possible, as that too will affect your premium costs. The best practice is to always discuss with your agent or broker when you have a question about the appropriate coverage.
Advise Employees to Question their Doctors About Prescriptions
Encourage your employees to ask questions to their doctors about the medicines that they prescribe as ineffective and unused prescriptions unnecessarily raise employee insurance claims and subsequent premiums. Doctors often over-prescribe medicines in the prescriptions and you end up paying more amount. New rules are getting made to encourage the prescription of cheaper generic medication. Sadly, this alone cannot reduce your costs. But there is something your employees can do to drive down the number of prescriptions they collect noticeably. Encourage them to question their doctors more often.
Shop Around Always keep looking for trade associations in your industry that can help you find reductions in cost for health insurance. Keep checking with different agents and companies to see if you can find the same or similar coverage for a lower price than you’re paying now. The discounts are out there; you just need to find them. Look for publications focused on your industry to get the lowdown on opportunities to save.
Start by searching on the Internet to learn more about offering options such as telemedicine and nurse hotlines, which can be more convenient and also less expensive than doctor visits.
