As a business owner, you’re always looking for ways to save money and increase revenue. Your goal is to make a profit, but insurance costs can sometimes get in the way of that. However, you don’t want to skimp on your employees’ health benefits. Here are seven tips to help you lower your employee benefit costs.
Review Your Policy Annually
Something many employers often lose sight of is how much insurance their staff needs. Your business is constantly changing and growing, so your insurance needs will also change. Often, business owners are over or underpaying premiums for staff, which can lead to a host of troubles.
Review your policy every six months to a year to ensure you and your staff are still adequately covered. If not, you may be able to adjust your coverage and free up space in your budget. Paying for coverage where you don’t need it is little more than wasted money, so you want to ensure every dollar counts.
Choose the Best PBM
Prescription coverage is an invaluable aspect of health insurance plans. However, with all the medication options available, managing your prescription plan can take time and effort. Fortunately, pharmacy benefit managers, or PBMs, can help ease that burden.
When selecting a pharmacy benefit management company, choose one that suits all your business needs. Inquire about clinical trials and specialty drugs, and use the latest research to ensure your PBM is working hard to keep your prescription coverage down.
Get Quotes From Multiple Companies
When the time comes to renew your policy, set aside sufficient time to compare shops so you can feel confident in your choice. As with any service-for-hire, it’s wise to get a handful of estimates or quotes before settling on the best company.
It might be hard to commit to changing companies if you feel loyalty to your current plan. However, you might be surprised how much rates vary between insurers. By doing comparison shopping, you could save a significant amount of money on your premiums.
Offer a Health Savings Account
A Health Savings Account, or HSA, is a savings plan that allows employees to set aside a portion of their pay each month for healthcare costs. HSAs enable employers to pay lower premiums without sacrificing the quality of care for their staff. They also give employees more control over their healthcare.
The main thing to remember about HSAs is that employees can only use them with HSA-compatible insurance policies. When you start comparison shopping for rates, make sure your insurer offers HSA policies.
Consider Bundling Policies
When you offer comprehensive health coverage, you might have multiple plans across several companies. However, you don’t need a different policy for medical, dental, vision, and prescription coverage. Instead, talk to insurers to find ways to bundle your policies to streamline the coverage.
One of the main benefits of bundling policies is that they’re more manageable for you and your staff to navigate. However, examine all coverage options to ensure a plan isn’t too good to be true.
Consider Working With a Broker
Insurance brokers are valuable third parties who can be intermediaries between you and your insurance agency. Brokers have extensive experience navigating the insurance industry, so they can help you find the best policy for your company.
Offering employee health benefits is a significant financial responsibility. If you have any doubts about your ability to navigate insurance waters, a broker will be able to guide you. They’ll help you find a policy that suits your budget and, ideally, saves you some cash in the process.
Pay Your Premium Annually
Paying your insurance premium annually instead of monthly is another way to save cash each year. While it may only be possible for some business owners, paying in one lump sum annually tends to lower monthly costs significantly.
Paying your premium in full is worth considering if you have the cash flow available. Not only will a lump payment cut costs, but it will also be one less monthly bill you have to keep up with. However, remember to set aside funds each month to avoid struggling when your bill arrives.
Employee health insurance is a necessary expense, but that doesn’t mean it has to break the bank. By following these tips, you can save money on your premiums and stretch your budget further. Do what’s best for your business and shop around for the most affordable policy that meets your needs. Finding the right plan could end up being easier and cheaper than you think.