Employer Health Insurance Plans–Can Business Owners Lower Costs When They Compare Insurance Policies?

Many businesses offer some form of employer group health insurance as these types of plans are common when it comes to providing medical coverage and care for workers, but there are concerns over cost that many employers have faced over the past months as economic difficulties have made meeting these health insurance deductible costs troubling for some employers. Yet, one method that is often advised, and apparently overlooked by some businesses, is simply comparing health insurance policies from year-to-year.

Usually, businesses will review their health insurance plan annually and, for many, simply take a standard policy that is common in their field and offers their employees a wide range of coverage. However, there are not only various offers that may allow a company to review their policy and make changes in their coverage, but looking at other insurance company offers can also lead to more affordable health insurance for some companies as well.

While it may seem simplistic, health insurance agencies often compete for businesses throughout the year and despite the fact that a company may already have a health insurance plan with another provider, there are offers and deals which may be presented to various companies if they will change insurance carriers. Obviously, comparing health insurance policies annually can bring about more affordability, but there is no guarantee that certain businesses may find a lower health insurance plan.  However, by simply sticking to what is seen as an industry standard employer group health insurance plan, these businesses may be paying more than is necessary to cover their workers’s health care needs.

As with almost any financial endeavors, comparing costs will lead to a variety of options and offers and, again, doing this each year can lead to businesses finding more affordability in their health insurance, but many advisers often suggest that businesses simply go beyond looking at their policies and look at coverage as well. Some small businesses may have a health insurance plan that covers conditions that apply to none of their workers, so rather than paying for coverage that is not needed, businesses may be able to tailor their health insurance policy to specifically meet the needs of their employees and, as a result, they may cut costs this way by only covering a set number of conditions from which workers may suffer.

There are arguments that have been made that companies who offer wellness incentives, like gym memberships or on-site health care facilities, can also lower their health insurance costs as this could lead to healthier employees that, again, may not need a wide variety of conditions covered in an employer group health insurance policy, but there are some who disagree due to the fact that cost reductions are not always seen immediately from these wellness programs.

Yet, when it comes to simple, general ways that employers may lower the health insurance costs they must meet to offer their employees health care coverage, many of these basic practices have been implemented and have brought about more affordability in a time when many companies feel that they may be unable to afford health insurance for their workers.