Health Care Savings Tip’s for a Recession

Health Care Savings Tip’s for a Recession

by Bret Harding

Times have gotten tough these days, especially for small-business owners.  So in the wake of the aftermath I decided it’s time for someone  to discuss money saving tips for small business owners.   After all…containing your healthcare plan costs, might help ease some of the economic pressures bearing down on your business.

First off health insurance can be emotional; this is especially true in a small business setting.  After all, we’re talking about your health and, in some cases, maybe even your life. If done right, you achieve the results necessary to not only attract and retain your employees, but also keep your group health insurance plan in place. Oh, and maintain your profitability as well! You can’t forget about that.

These three simple tips might help you offer great health care benefits at an affordable price:

Healthcare Savings Tip No.1 – Consider Reducing Benefits

Many employers provide a buffet of insurance to their employees, but in tough times many companies are being forced to trim the fat from their current employee benefit plans.  One way many companies are saving money is offering employee’s only group health insurance, and letting the employee chose their own “Voluntary Insurance.”  Voluntary insurance plans offer employee an opportunity to choose insurance plans that personally fit their own individual needs.   Most often voluntary insurance plans focus on providing affordable Life, Disability, Long term care, and supplemental insurance (i.e. cancer policy, critical care, personal accident, personal sickness, etc.) to employee’s of a company on a discounted basis’s.  Voluntary insurance plans let employee have a wider array of options to choose from, and better enable the employee to find plans that better meet their needs.  Implementing a voluntary insurance plan program is a Win / Win for the employee and the employer.   A website Ii recommend: www.VoluntaryInsurancePlans.com.

Healthcare Savings Tip No.2 - Offer HMOs

Health Maintenance Organizations remain valid and worth any employer's consideration even if some of the luster has worn off over the years. HMO plans continue to have the best price point for small business insurance coverage, so it's a great way to save on your healthcare costs.
With an HMO, your employees get medical attention principally from the hospitals, doctors and other providers with which the HMO has a contract. Each employee works with a primary care physician who helps address their medical issues.

While it's a great way to save on your health insurance costs, many employees view HMOs negatively. For years, HMOs have had a reputation for denying medical treatment that would be granted in other coverage types or even offering below-average care. However, don’t be swayed by just talk -- look into any HMO you’re interested in.

Most HMOs offer excellent medical care, but even still every HMO is different. Do your due diligence on HMOs before making a final decision. It’s also good for you, as an employer, to pay for as much of the HMO premium as you can afford. If your employee wants the more traditional plan, then they should be required to pay the difference. This helps further cut company expenses.

Healthcare Savings Tip No.3 - Offer Health Savings Account (HSA) Plans with High Deductibles

You might save the most on small business health care insurance by using HSAs, which must be coupled with a high-deductible insurance health plan (HDHP).  HSAs let your employees purchase routine health care services directly by using spending accounts. For example, a routine trip to the doctor's office would be paid for out of an employee's HSA. Non-routine expenses, such as a major health crisis, are covered by traditional insurance after employees meet a deductible.

An HSA savings account is established for each employee through a trustee or custodian. The employer contribution to an HSA account is non-refundable. After making it, you cannot recover it. When employees move to another company, they take their HSA accounts with them. There are no limits to accumulated HSA funds, which are tax exempt and can be invested.
Compared to other types of insurance premiums, your savings with an HDHP for family coverage can average $1,400 per employee per year.

Although your employees may initially be skeptical of an HDHP, after a full explanation they’ll generally understand the advantages an HSA account combined with an HDHP. It’s truly win-win for both employers and employees. It’s good healthcare coverage at an affordable price.

The Bottom Line on Health Insurance

Small business health insurance costs might be skyrocketing out of control, but you can still lower other costs and offer employees excellent insurance coverage. You just need to be smart about it and keep both your employees’ well-being and your company’s bottom line in focus.

When defining your plans, you should know there’s help available to discuss all your options.  If you have a local insurance broker you trust, they’ll almost certainly help you out as well.

I’ve outlined only a few tips out on how to save on health insurance, but there’s many, many more. If you have any others you'd like to share or have questions about ways to save money on small business health insurance, please call 801-372-2647, or email me at: bret@UtahInsuranceSolutions.com.  You can also visit my website: www.UtahInsuranceSolutions.com