Lowering Small Business Employer Health Insurance Costs–Can Using High-Deductible Plans Benefit Companies?

In just in the last few days we have seen some reports that show employers are having to pay more when it comes to providing health insurance for their workers, and since so many rely on policies like employer group health insurance plans, there is some concern that problems like employees having to carry more of the cost or cutbacks in coverage may be seen, which would obviously be a financial problem for certain workers who cannot afford less coverage or health insurance costs alone. Yet, throughout 2011 we have seen some proponents speak in favor of high-deductible health insurance plans that may be helpful for these companies where health insurance costs are simply too high.

Proponents of high-deductible health insurance plans for small businesses usually state that these plans are beneficial simply because they come with more affordable premiums, can offer a great deal of comprehensive coverage in certain cases, but are also going to be beneficial when it comes to avoiding costs that may be too much for one business to meet particularly when employees are not necessarily in a position where they need to make a claim that often. Simply put, these high deductible health insurance plans have been helpful for companies when their workers may only need medical attention during various times from the year as opposed to a small business where the workers may frequent the doctor very often.

Obviously, it’s a special case when a few employees are chronically ill, but when it comes to getting health insurance that is affordable for small businesses, particularly in cases where the financial burden of doing so is difficult to meet, these high deductible health insurance plans have often been paired with a health savings account for workers who can set aside funds throughout the year and use the money they have saved to pay for routine visits, small medical costs, or to meet deductibles if a large claim is made as a result of a financial emergency or unforeseen illness.

Yet, business owners are often told to thoroughly research how this health insurance option will impact their company as healthcare professionals often point out that this could be a step in the wrong direction for some companies or particularly for certain workers, as many rely on employer group health insurance plans as a way to obtain insurance coverage even when a pre-existing condition is in place. What this means is that some employees who do have to go for routine checkups or treatments could drain their health insurance savings account quickly or may be burdened by the lack of coverage that could arise due to these high-deductible plans, simply in terms of the costs that come with having to pay a high deductible.

However, as of some business owners are scrambling to look for ways to either meet these health insurance cost increases or streamline their current health insurance plan so that they can find areas where cuts may be made without doing damage to their workforce, some feel that considering these high deductible plans for their company may be beneficial in terms of not only keeping coverage available but avoiding excessive costs and drawbacks that are being seen by small businesses when continual price increases are a problem.