Is Your Business Facing Insurance Headaches?

Health insurance can take a sizable chunk out of your budget, and is a major concern for many business owners, especially going into 2015.

As a business owner, cutting down your insurance costs is risky.

If you cut back on coverage, or even lay off staff, you could negatively impact your business.

Good health insurance is one of the top things potential employees look for, so you risk losing good employees to the competition. Cutting back on coverage can also bring down morale and even tarnish your reputation.

As the article "Health Insurance Premiums Likely To Rise In 2015" points out, the signs are already there that health insurance costs are on the uptick, with premiums in Washington State alone looking to rise by up to 8%. Cutting down on health insurance costs are more important than ever. 

Here are seven ways you can cut your health insurance costs without alienating staff or struggling to stay competitive:

1. Shop Around - Don't assume you have the best deal. Shop around as much as you can and compare different health insurance plans to see where you could make the biggest savings. If you go through a broker, make sure they offer a good range of options and are as committed to cutting your costs as you are.

2. Offer a Wellness Program - Healthier employees are less likely to make insurance claims. A good wellness program can also boost morale and keep you competitive when it comes to recruitment. You can include disease management in your wellness program, offering screening and advice to employees at risk of diseases such as diabetes or heart disease.

3. Share the Costs - One way of sharing your health insurance costs is to pool resources with other local employers to benefit from bulk purchase savings. Local associations can help you find compatible businesses to share with. You can also share costs with your employees. This won't be the most popular option, but if you talk it through with them you may find it's a way forward that keeps your health insurance program afloat.

4. Switch to a Health Savings Account - A Health Savings Account (HSA) allows employees to put some of their pre-tax dollars into a savings account, which can then be drawn on to pay out of pocket medical expenses. HSAs give your employees more control over their insurance payments as the money still belongs to them. HSAs are offered in conjunction with High Deductible Health Plans, which often have lower premiums for you.

5. Offer Generic Only - The Generic Pharmaceutical Association estimates that using generic instead of brand name drugs can save you up to 80% on drugs costs - a saving which will be reflected in your insurance premiums. The drugs do the same as their brand name counterparts, but you'll save money and that saving will be passed to your employees too.

6. Limit Practitioner Choices - Some health insurance plans allow you to limit the number of practitioners your employees can choose from, which allows you to cut costs without asking your employees to pay more. You save by limiting practitioner choices to lower cost ones. If you take this option, it's important to make sure the choices you do offer are accessible and offer good quality care. 

7. Audit Who You Pay for - Audit your health insurance program regularly to make sure you're not also paying for your employees’ friends or non-dependent family members. It's also a good idea to check that you're not still paying premiums for employees who have left your company.

Healthcare costs can be something of a headache, but by re-assessing what you offer and how you pay for it, you can cut down your costs while still keeping your business healthy.