The answer to this question is it depends.
But if you can, the savings can sometimes equal the salary of an average employee.
Yes, I’ve seen reductions in the $40,000+ range, depending on group size.
If you trade one company for another with the same benefits, you will likely not see a decrease in premiums. The trick is to switch to another carrier that uses different underwriting assumptions for your premiums. If you are a small employer looking for lower health insurance premiums and you haven’t looked at a Self Funded Plan for Small Groups, you really should.
How can a Self Funded Plan for Small Groups lower your premiums?
With a Self Funded Plan for Small Groups, the insurance company will ask for health information from each employee. If you have a generally healthy group, you will be given in effect a “good health discount.”
With a Self Funded Plan for Small Groups, you will be entitled to an annual refund of excess premium if your group has annual claims lower than the target amount.
About 70% of my groups receive refunds with the average amount in the $4000 range.
- Will you be required to cut your employee’s current benefits? No
- Will access to doctors and hospitals be compromised? No