Health insurance costs are becoming a major concern for employers during these difficult economic times. Employee health insurance is quickly becoming an increasing cost of doing business, with annual increases of around 6.9 percent annually according to the National Coalition on Health Care.
Business owners are not alone in the fight to improve health care and reduce health care costs. Here are 5 of the top ways that successful employers are reducing their health care costs year-over-year:
1. Increase cost sharing by employees – This recommendation is still the primary recommendation for benefits consultants. Statistically, 40 percent of employers still have deductibles of $ 100 or less. If your organization falls into this pool, expect to save 1.1 percent by increasing your deductible to $ 250, 25 percent by increasing your deductible to $ 500, and 33 percent by increasing your deductible to $ 1,000.
2. Allow employees to pay for health care costs with pre-tax money – While this flexible spending account may not make a huge difference to the bottom line of the employer, employees can benefit anywhere from 20 to 35 percent depending on their tax bracket by paying for health expenses using a tax-free account. The added bonus for employers is that companies can choose to reduce the base salary of employees by setting up this service, which in turn can reduce employer Social Security and other taxes.
3. Shop around – It is recommended that employers plan to at least shop around for better insurance deals on a yearly basis. New government policies along with business efficiencies may be able to help reduce the premiums that you are currently paying by doing research on employee health benefits offered by other providers. Most companies grow each year, which can also help reduce the average health care cost of employees by shopping around for better plans.
4. Join a group – Small business owners are always at a disadvantage when it comes to health care coverage because of the inadequacies in economies of scale. By working with other small businesses to get a group rate discount, your company can obtain similar discounts offered to large employer groups.
5. Implement Corporate Wellness Programs Programs – Research has shown that companies that implement Employee Wellness Programs can expect to receive a $ 2 to $ 10 return on investment for every dollar spent on corporate wellness programs. By helping employees reduce their risk for cardiovascular diseases and catastrophic health events, your company and employees can reap the economic rewards of a healthy living.
Kersh Wellness is a premier Corporate Wellness programs provider in the United States and Canada. If you or your company is interested in finding more about reducing health insurance costs through employee wellness programs, please call 1-800-467-3005 or visit our website.
Feature Image : Global Core Fitness