How to Keep Small Business Health Insurance Costs Under Control
As a small business owner, one of your biggest concerns is likely the cost of providing health insurance for your employees. With premiums steadily increasing, it can be difficult to keep up with the expenses without severely impacting your bottom line. However, there are steps you can take to keep your small business health insurance costs under control.
Shop Around
When it comes to health insurance, don’t settle for the first plan you come across. Take the time to research different options and compare premiums and coverage. Even if you’ve been with the same insurance provider for years, it’s always worth exploring other options to make sure you’re getting the best deal.
Consider High-Deductible Health Plans (HDHPs)
HDHPs typically have lower monthly premiums but require employees to pay a higher deductible before insurance coverage kicks in. For younger, healthier employees, this type of plan can be a cost-effective option. Additionally, offering a Health Savings Account (HSA) can help employees save money tax-free to use towards medical expenses.
Encourage Wellness Programs
Implementing wellness programs in the workplace can help reduce the number of claims filed and, in turn, lower healthcare costs. This can include activities like on-site fitness classes or educational workshops on healthy eating and stress management.
Consider Self-Insuring
Self-insuring, which means the employer assumes the financial risk for providing healthcare coverage to employees, can be a viable option for larger small businesses. By self-insuring, employers can avoid many of the fees associated with traditional insurance plans and have more control over the specifics of the healthcare offered.
Partner with a Professional Employer Organization (PEO)
PEOs provide payroll, HR, and benefits services to small businesses. Partnering with a PEO can help you offer quality health insurance to your employees at a more affordable rate, as they can often get better rates on insurance policies due to their large client base.
In conclusion, while healthcare costs can be a burden for small businesses, there are strategies that can help you keep them under control. By shopping around, considering HDHPs, encouraging wellness programs, self-insuring and partnering with a PEO, you can balance providing quality healthcare coverage for your employees while also managing costs.
