The decision to offer group health insurance benefits to your employees starts with questions about the overall cost. After all, you need to remain profitable, and paying for medical coverage can certainly cut into your bottom line. However, with the numerous benefits of offering health insurance and the possibility of current government regulations forcing you to do so, it makes sense to explore all your options and find out how you can provide the highest quality insurance at the lowest price possible.
When the figuring out how much does group health insurance cost, you need to gather a lot of information before coming up with a final dollar amount. In general, both the employer and the employees share costs for all doctor’s visits, prescriptions, hospital stays, and any other necessary medical care.
Employees must pay the following for health insurance benefits:
- Deductible – Money paid before the insurance policy starts paying
- Copayment – Payments made directly to the medical service provider
- Coinsurance – Percentage of all bills the insurance does not pay
If you represent a company interested in offering the best health insurance benefits to employees, it makes sense to minimize all three of these payments as much as possible. However, you cannot amply take on 100% of all medical bill responsibilities. Consider working with an employer benefit consultant to learn about all your options for overall savings.
Costs of Group Health Insurance for Employers
According to a survey conducted by the nonprofit National Business Group on Health in 2020, the average expenditure for employees is approximately $15,000 annually. For many workers, this is a considerable amount of money that would stretch their budget and uncomfortable amount. In order to minimize these expenses, the employer themselves can make smarter choices about the policies and packages they provide.
Some Options for Minimizing Insurance Expenses
Far too many businesses look to eradicate benefits in an attempt to save money. This backfires with employee dissatisfaction, retention issues, lack of value for jobseekers, and an overall hit to morale that can affect productivity and profitability.
Employers can save their workers money on health coverage with the following:
Health Savings Accounts
Individuals who put money aside in a tax-free account specifically designated for medical expenses can save money in the long run in conjunction with healthcare benefits that involve high deductibles. Your business saves money by not paying out earlier, and the employee can save money on their taxes and ensure they have enough cash on hand to cover bills.
Optional Supplemental Insurance
Supplemental insurance policies add options for employees who want to avail themselves of extra coverage. This may keep your expenses down to begin with as you do not have to pay the maximum for every worker in a shared cost plan.
Medical Expense Reimbursement Plans
Combined with a high deductible group health insurance policy, a self-funded MERP can bridge the gap between what the employer and employee have to pay. This works well because workers do not have to sacrifice coverage while saving money.
Many options exist for overall savings when it comes to offering health insurance policies to employees. Working with ClaimLinx and a professional consulting team who has a strong track record of success can help you reap all the benefits of an affordable plan and employee policy management.
Group health insurance is something that employers should consider when determining coverage to cover. For the expense, it may be the most worthwhile option available.