There are some possible ways to cut your insurance costs. Below, we have discussed some of them.
Five Ways to Cut Your Insurance Costs
Almost 1/3rd of medical insurance premiums have been raised by 30% or even more. With the increased rate, insurance premiums for each staff will surpass 3,000 USD. Most of the senior executives suppose that the healthcare cost would carry on increasing 20% or more every year for at least next three consecutive years. So, if you still are not serious about reducing your company's medical insurance expenses; do it now, this is the high time to do it.
The things you should do
- Know how the method works or does not work
- Know about the options you can avail; ask local insurance agents about the available and best possible plans
- Compare the plans for benefits as well as service assurance
- Go for BCBS (Blue Cross and Blue Shield) plans or HMO (Health Maintenance Organization). BCBS offers some special benefits to the small business owners; while HMOs are also good option as regarded by the experts.
- Check, whether your company is qualified for the new inexpensive health plans.
- Foundation-sponsored pilot projects are useful to cut healthcare expenses by 30% to 40%.
Health insurance market is changing rapidly and producing call for a truce over the business conflict with banging healthcare expenses. Next decade is very much significant regarding changes in healthcare.
The ways to cut your insurance costs are as below:
- Raise Cost-Sharing by Workers - This is one of the most useful ways to cut your insurance cost. Small employers are more likely to pay for their workers' entire healthcare bill than the big employers. However, it's not good always. 52% respondents to Business Health Survey said that they pay for their workers' entire insurance premiums; while 45% reported to encourage workers to engage more and more in this process. 40% business owners set 100 USD as deductible; while it would be better to be 250 USD. It may help them to cut premium costs by almost 11%; whereas 500 USD and 1,000 USD would cut the cost by almost 1/4th and 1/3rd, respectively.
- Shift High-Risk Staffs to High-Risk Pools - Insurance premiums become very high while an employee in a small-group health plan gets seriously ill with some severe diseases like a cardiac disease or cancer. The employer must shift the employee to a high risk pool and then bargain for low premium for healthier employees of the group.
- Permit Workers to Pay the Premiums with Tax-Free Dollars - Create a flexible spending account to let your workers pay their health premium as well as un-reimbursed healthcare costs with pre-taxed or tax-free dollars. With such account they can save up to 20 cents to 30 cents per dollar; since state and national income tax and Social Security taxes are not applied. In addition to that, you can also save by cutting your worker's basic salary on which you pay taxes. Recruit a payroll accounting consultant to manage due paperwork. Even after paying service fee, you can save a lot.
- Substitute Conventional Plan with HMO - HMOs provide coverage for almost every healthcare requirements like routing care for a fixed monthly charge that the conventional plan doesn't. It's cheaper too. Staff model and group model HMOs are much efficient to cut healthcare costs.
- Switch to an Open Enrollment BCBS Plan - BCBS plan basically works as high-risk pool by offering an open enrollment period. During this any group can purchase health insurance. 21 BCBS companies offer such facility.