Small Business Health Insurance–How Businesses Owners Are Lowering Employer Group Coverage Costs

Small business health insurance has seen changes in many areas as there are businesses that are offering different types of health insurance plans to their workers, while others are implementing various methods that may help lower overall costs that must be met by an employer and workers in order to keep their current health insurance coverage in place. However, when it comes to the practices of business owners lowering these employer group health insurance coverage costs, there are some workers who are having to shoulder more costs, since these new steps are being taken by businesses so that they do not have to either drastically reduce coverage or eliminate a health insurance plan altogether.

While the options of employer group health insurance policies will vary from state to state and, depending on the size of a company, the coverage that an employer may have within their plan will differ, coverage is one way that businesses have been able to lower costs on health insurance. Some employers who may have a small business are able to cut the overall cost of their health insurance plan by limiting coverage, which if only a few employees are covered under a plan may be a viable option as, in some cases, these workers may not need a wide range of conditions to be covered.

However, there are some arguments that employers are causing their workers to shoulder more of the cost of health insurance plans as reports have stated that since 2005 workers have seen a 47% increase in the amount of costs they have to meet, and there are some businesses who have turned to only offering high deductible insurance or providing incentives for employees to become healthier, in exchange for lower premiums, but this is not always available to every worker.

Understandably, there are some businesses who have simply been unable to shoulder the costs of a small business health insurance plan, as the premiums for these options may be more expensive, but the small business health insurance tax credit is hoped to offer alleviation from these costs for these businesses. Yet, the amount of health insurance costs workers are having to bear is higher than the increases they have seen in wages, according to reports, but there are ways which may help business owners find more affordability.

While, again, a high deductible health insurance plan when paired with a health savings account can offer low monthly premium costs, this is usually only helpful if a company has a small number of workers or may have employees who rarely visit the doctor. A high deductible plan does usually come with monthly payments that can be quite affordable, but if small amount of medical treatment is needed throughout the year, workers will have to use money from their health savings account or meet these costs out-of-pocket.

Also, workers can benefit from wellness program incentives that employers offered as, again, healthier employees can be less expensive to insure and, since employees may be willing to participate in these programs if it means more affordable health insurance costs, this could be an option that businesses use to lower their health insurance costs, but again is not available in every situation. However, advisers also suggest that businesses review their coverage and health insurance policy, as well as, look for more affordable options that may be offered through either their current carrier or another health insurance provider.

During tough economic times, financial strains are being experienced by many businesses and it is a sad fact that many are having to resort to reducing coverage or in some cases eliminating health insurance altogether, but there are practices that can be beneficial to a company and lower health insurance costs.  However, employers must look at the needs of their workers, the costs of the plans available, and then make a decision as to what plan may be best, as there are cost-saving options for almost any business that can help them keep an affordable and helpful health insurance plan in place for their company.