How to Save on Health Insurance 2018

Most small businesses want to offer their employees health insurance because it enables them to attract and retain highly qualified talent. However, the effort involved can be a significant limitation. The 2015 National Health Business Survey (NSBA) Health Survey found that only 41% of companies with zero to five employees provide health care services, compared with 46% in the previous year. The situation is slightly better when all companies with less than 500 employees are considered, with 65% of employers offering insurance in this category.

The increased cost and complexity of the healthcare system are some of the reasons why small business owners refuse to provide this significant benefit. However, it is possible for companies to lower their insurance costs. Check the group insurance against the costs of the individual plans: The age profile of your employees and the existing conditions determine which of the two options is more economical. A group rate may be more favorable as the premium payable is based on the rate applicable to people with the same demographic profile. You will be better advised with this option if your employees are more susceptible to chronic diseases.

On the other hand, staying with individual plans can cost less if each of your employees receives a lower premium. There is no simple formula for determining whether to save more money with a group plan or a group of sections. The best way to find out is to determine the insurance premium for each option. If you think you do not have the required number of employees to qualify for a group, do not worry. Even two employees are enough. Do not forget to negotiate: Many small business owners think that the annual premium can not be reduced. But that’s not true. Health insurance premiums can be negotiated, especially by companies with 50 to 99 employees.

When an insurance company raises the rates, they usually refer to the fact that all employees have completed one year. Employers should state the factors in their favor. You may have implemented a comprehensive wellness plan over the last 12 months that could have led to healthier employees. Some older employees may have withdrawn or resigned. Brokers can play an important role: Do not underestimate the benefits that health insurance brokers can bring to the negotiating table. You will be informed about the latest developments in the various laws and regulations of the health insurance industry. They also have extensive knowledge of the different plans available from different insurers.

You may be eligible for tax credits: collect this from your tax adviser. Employers with fewer than 25 full-time employees earning an average of $ 50,000 or less are eligible under certain conditions. This includes contributing at least 50% of the total cost of the premium and obtaining coverage through the Small Business Health Options Program (SHOP). Reducing the cost of health insurance should be a priority for all private companies. According to the results of the NSBA survey, 90% of small business owners said they paid health insurance premiums at their last renewal. The rise in health insurance costs meant that less than half of respondents postponed salary increases. If small businesses need to remain competitive, they should take every opportunity to provide the most appropriate health insurance for their employees at the lowest possible cost.

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