Employers Seek More Affordable Employer Group Health Insurance Plans–How Can Businesses Lower Premiums?

Employers who offer health insurance coverage through an employer group healthcare plan have, traditionally, been able to find options which are helpful for their employees and can be quite affordable as well. Yet, a slow economy and backlash which is still being felt from the recession has caused many employers to either discontinue their employer group health insurance plan or seek more affordable options for providing healthcare coverage for workers.

Obviously, health insurance is a major cost for many businesses and can be quite burdensome for employers. Yet, many business owners have turned to various options when it comes to lowering health insurance costs for their employees and lessening the overall burden on their business. While not all companies may be able to afford health insurance or can take advantage of certain strategies to lower healthcare costs, there are options for some employers to make their employer group health insurance plan more cost-efficient.

While there are tax credits available to small businesses that are still in place, which can help alleviate the burden of health insurance premiums, not all companies may qualify for these opportunities. The small business healthcare tax credit which was offered months ago may help employers who have a small workforce, as health insurance costs have been quite expensive due to the fact that a smaller number of individuals are insured and, in most cases, insurers require higher premiums.

There have also been some employers who have simply cut back on the level of coverage which they can offer through their employer group plans. Certain conditions cut out of an employer’s plan may lower costs on premiums, but this can be a problem for certain workers who may need coverage related to healthcare costs for medical conditions that may be cut.

In some cases, employers have also asked that their workers shoulder some of the burden on health insurance premiums, which can lower the costs that a business owner must meet, but this again is obviously a strain to employees in certain cases. Yet, workers who may lose their health insurance coverage without contributing have, typically, been in a position where they may be more willing to help meet premium costs.

Understandably, there are still situations present that have caused employers to no longer offer employer group health insurance opportunities for their workers or cases where they have had to drastically scale back coverage due to financial hardships. Yet, health insurance tax credits, sharing premium costs with workers, or scaling back on unnecessary coverage in certain policies have offered some relief to employers over the past months, but again, this is not always an optimal choice. However, employers may also be able to shop around with a variety of health insurance providers and find lower costs through a new plan, but these options are typically dependent upon employer’s area and the type of coverage they may be seeking.