Health insurance can be a big expense for employers, especially for small businesses, which are often hit hardest in terms of health insurance costs. Despite rising insurance costs, offering California health insurance as part of a benefits package helps attract the best and brightest employees. In that sense, offering employer-sponsored health insurance is often an essential part of a successful business.
Still, there are ways employers can reduce their health insurance costs. Below, we discuss five things small employers can do to ease some of the burden.
- Institute an employee wellness program –– A comprehensive wellness plan helps employees stay healthy, and can save companies money by reducing health insurance costs and absenteeism. A wellness plan may include things like gym memberships, flu shots, smoking-cessation programs, cancer screenings, and professional nutritional and health consultations.
- Ask employees to contribute more to the cost of health insurance — Even a small increase in employee contributions toward the cost of health insurance premiums can make a big difference for your bottom line. Work with your employees to find out which benefits (health insurance, dental, vision, etc.) are most important to them. You may find that the majority of your employees are willing to forego dental insurance in favor of a better health insurance plan, for example.
- Shop around for the best insurance rates — Many businesses simplyaccept health insurance rate increases without question. If your rates are increasing and insurance costs are getting out of control, shop for a better rate, and work with an agent/broker who knows the local insurance market intimately.
- Consider a Health Savings Account (HSA) — HSAs are becoming increasingly popular, as they allow both business owners and their employees to save money, tax-free, to cover healthcare expenses. Businesses must have a high-deductible plan to enroll in an HSA.
- Look into discount drug programs — Many large companies like Walmart and Rite-Aid offer prescription discount programs that could significantly reduce your prescription costs. Check with your local insurance broker to find out what may be available in yourarea.
With a bit of strategic planning, business owners can dramatically cut back on costs, improving their bottom lines.