Group health premiums are calculated on two main factors:
- The age of the group members.
- For larger groups, the overall health or claim experience of the group.
So unless you can make your group younger or healthier, it’s difficult to lower the rates for your selected plan. However, there are some very significant things you can do, which surprisingly, many groups overlook. The number one reason employers over pay for their employees’ health insurance is because they pay for benefits their employees don’t use. So what can you do to lower your group health premiums?
- Offer more than one plan.
- Educate your employees on why they will save money with a higher deductible.
- Educate employees on how simple and smart it is to utilize a Health Savings Account (HSA).
- Contribute to your employees’ HSA. This is worth the expense in the premiums you will save.
- Offer plans with and without prescription co-pays.
- Make sure employees that are 65 or older are educated about their Medicare options.
- Make sure employees are contributing to their premium.
- Incentivize employees to contribute to their HSA.
- Don’t’ be married to one company. Always compare at renewal.
- Consider a self-funded health plan if you have at least 5 employees.
At www.grouphealthtn.com, we have been helping small employers in TN for 20 years craft their insurance plans so that they are as efficient as possible. Call us at 615-376-8899 and we will offer a no obligation consultation on your small group’s health insurance plan.