Employer Group Health Insurance Plans–How Businesses Lower Monthly Premiums Through Changes In Deductibles

Employer group health insurance plans have been an issue for many businesses over the past months as uncertainty over how future legislation in the health care industry may impact businesses and the need for companies to cut costs at the present time have led to business owners looking for ways to lower their monthly premium payments through options like changes in their deductibles. Understandably, many business owners wish to avoid cutting their employees’s health care coverage, but there are some instances where these companies are simply unable to continue meeting monthly premium payments, even if their workers are shouldering a greater share of the burden.

However, various methods that these companies have been using have led to some finding more affordability in their group health insurance plan, but they may not always be a popular alternative for some workers, as higher deductibles could be problematic for someone who may frequent the doctor often. Yet, smaller businesses have been able to lower their monthly premium payments by increasing the deductible that their employees must meet when they seek medical treatment, but many have also paired these high deductible insurance options with a health savings account.

This has been helpful for businesses due to the fact that employees may be able to save money throughout the year and build up a sizable account that can be used for meeting these out-of-pocket costs when a routine visit or low-cost medical treatment is needed, but there are also benefits in that an employee may have the money saved up to meet their deductible if a high amount of medical treatment is needed and expensive medical care is incurred. Understandably, this is not optimal for every business health insurance plan, but for individuals who worry that their employer may cut their health insurance altogether, some may be left with high deductible plans as their only option when seeking individual coverage anyway.

Essentially, for employees looking for individual coverage, or a business increasing their deductible, cost is at the core of the issue and even when these methods are used to lower the premium payments a company must make, businesses need to make sure that they look over their workforce first before making any decisions. If, in a business setting, changing to a higher deductible health insurance plan is going to hurt numerous workers, this would obviously create a problem for any business owner who wants to take care of their employees, so perhaps exploring other employer group health insurance plans may be necessary rather than simply increasing a company’s deductible in their policy.

However, business owners are usually looking at other carriers or offers with their current insurance provider for more affordability, and when a small business is paying high costs on an employer group health insurance plan, this could be the result of having certain conditions covered which, if a business has only a few employees, may be cut from a policy if it will not cause any adverse affects to workers. Yet, for a business who may have relatively healthy employees or individuals who will participate in a wellness program to get themselves in a healthier physical state, this could lead to fewer visits to the doctor and, if a high deductible plan may be beneficial, when a health savings account is used alongside this particular form of health insurance, some workers may find that they are saving on premium costs as a result of their high deductible employer group plan and being in a position where they may not need to see their doctor as often throughout the year.