Providing superior health insurance — like Blue Cross Blue Shield of California — to employees is a major expense for expense for large and small businesses, alike, but many companies are determined to give workers the coverage they need to live long and productive lives. According to a recent Kaiser survey, annual premiums rose 4 percent for employer-sponsored family healthcare coverage in the previous year, with average price tag rising to $16,351. Small businesses can reduce health insurance costs by utilizing these five tips:
- Keep employees healthy. Institute wellness programs similar to the one Motorola uses to keep its employees healthy. This program includes flu shots, cancer screenings, smoking cessation, and disease management programs to help workers manage diabetes, asthma, and other chronic conditions. Motorola found every dollar invested in a wellness program returned $3.93 in health insurance savings.
- Shift the responsibility to find coverage onto the worker. Many small businesses are reluctant to reduce contributions to workers’ insurance coverage, so they are saving money by asking employees to find their own policies. The small business still contributes the same amount of money towards the policy, but enjoys savings from reduced administrative costs.
- Establish a health savings account. These are tax-exempt accounts small businesses can use to pay for certain medical expenses. To establish a health savings account, small business must have a high-deductible health insurance plan. For example, in 2007, the minimum deduction for individuals is $1,100 and $2,200 for families.
- Join a group of other small businesses; the larger the group, the lower the premiums tend to be. If a small business has less than ten employees, it can partner with other business to establish a small group plan.
- Shop around the various providers for the best deal. Start by searching the internet using terms like “California health insurance” and “health insurance exchange.” Ask other small business owners about their insurance carrier, including how much they pay for premiums.