Many employers are looking for ways to find affordable group health insurance plans or make their current plans more affordable for their employees and their overall business costs, but there are not a great number of options that these companies may have at the present time outside of either reducing coverage or implementing a higher deductible that workers must meet out-of-pocket. However, when it comes to finding affordability on premium payments, these high deductible health insurance policies have not only been beneficial for to individuals who are looking for some form of health insurance coverage, but they have been used by some businesses, along with health savings accounts to help prevent either cutting coverage or eliminating health insurance altogether.
Obviously, there are some situations where a high deductible policy will be more helpful to workers than others, as a small workforce who may have a relatively healthy number of employees may not need to frequent the doctor that often and, as is the case with many unemployed or self-employed individuals, are only looking for coverage to prevent excessive costs related to catastrophic medical care. Yet, there are businesses that may have workers who have had preexisting conditions that were only able to be covered through an employer group health insurance plan and if routine visits to the doctor are required this could cause the out-of-pocket costs for these particular workers to increase if a higher deductible is in place.
According to an article on Equifax.com, simply put, “The higher the deductible the lower the premium. A carrier discounts a policy for a higher deductible for a couple of reasons…[because] the carrier has to pay less money, compared to it pays per claim.” While this may be true for numerous forms of insurance, health insurance particularly has been the focus of high deductible plans and health savings accounts as, again, in a time where the costs for small businesses to insure their workers has become difficult, finding affordability in these premium payments has been necessary for many companies.
Yet, some businesses may want to either speak with their insurer, look at other providers, or implement alternative cost savings options like wellness incentive programs, which could help lower overall costs in the long run, and avoid increasing deductibles that workers must meet if premium costs are becoming difficult to pay. However, speaking with insurers and comparing health care plans are helpful but businesses will also need to consider their employees, as some companies fail to realize that health insurance options may be one of the main attractions to their company or could be one of the main motivators keeping good workers loyal.
While the aspects of providing employer group health insurance differ from one company to another and can be complex, if businesses are able to implement these higher deductible health insurance policies rather than eliminate health insurance coverage, offering opportunities for health savings accounts are also beneficial as money saved in these particular accounts are greatly helpful when it comes to meeting out-of-pocket costs for routine visits or as a way to help meet their deductible if an employee needs to take advantage of their health insurance coverage for medical treatment.