6 Tips to Help Small Businesses Reduce Health Insurance Premiums

Many small businesses do some exploring before buying the most suitable health insurance for their company. They want to get the best policy at affordable premiums. Most of the time, working with an insurance agent makes it easier for the startup or small business to decide on the right plan.

The following are 6 tips for employers on how to reduce the premiums without compromising the insurance coverage.

Determine What Your Employees Need Most

You may want to maximize your coverage by buying only what is useful for your employees. If you need to remove some of the health coverage, make sure that you leave those that are beneficial to your employees. You may be doing this to cut some costs but always keep the welfare of your employees in mind. To make tailoring the health benefits easier, consider some important factors such as the age group of your employees, their gender, and so on.

Promote Health and Wellness

One way to make your company generate a lot of profit is to have active and productive employees. Your employees can work for your company to the best of their abilities if they are healthy and happy. Promote prevention by encouraging your employees to maintain a healthy lifestyle.

Inform Employees

You may not be aware that your employees do not understand the benefits of their health insurance. They should take advantage of the insurance benefits. You do not want your money to go to waste because your employees are not using their health coverage to the fullest.

Opting for Pure Defined Contribution Plan

This is an alternative to group health insurance, in which a lot of small businesses transition into. Basically, Pure Defined Contribution Plan uses a fixed amount and offers health insurance allowance to the employees. With this allowance, employees will buy the coverage they need, and the company will reimburse the said amount.

Make Use of Cost-sharing

This is a method that used by many employers. They make their employees pay more of the costs of health insurance. However, the majority of employees do not like this strategy because of the need to use out-of-pocket payment. But, companies choose cost-sharing in order to lessen the contributions for dependent insurance coverage.

Switch to CDHP

CDHP is short for Consumer-Directed Health Plan, which encourages employees to be involved in the decisions. By these informed decisions, it can help reduce the overall cost of the health insurance as your employees also learn to spend smartly. Basically, CDHP provides a high-deductible coverage, which means lower premiums for the policyholders.

If you are looking for ways to save money on the health insurance of your company, find an agent first as the professional can help you make the right decision. At Choice Enrollment, we work hard to make sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (719) 481-1616​ or Click Here to request a free quote.

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