Like most small business owners, you want to offer your employees a good health insurance plan and ensure they are healthy. According to the U.S. Bureau of Labor Statistics, 57% of private industry workers had life insurance in March 2022.
But with premiums climbing yearly, finding affordable options is getting harder and harder. Here’s how you can keep the cost of offering health insurance down while still providing your employees with excellent benefits:
Insurance Reimbursement Software
There are ways to reduce costs without sacrificing coverage. One of them is utilizing an insurance reimbursement software system that enables you to keep track of how much each employee has already received from insurance claims and how much more they may still be eligible for in the future.
If you’re curious about insurance reimbursement software, it keeps track of how much has been paid out to each employee for medical bills and the locations where they incurred those charges. This way, you’ll know immediately if an employee submits a claim, but it doesn’t correspond to what they said occurred during their visit or process.
Offer Flexible Spending Accounts
One way to help employees pay for their medical expenses is to offer flexible spending accounts (FSAs). An FSA allows employees to contribute pre-tax dollars into an account, which they can use for medical expenses. It means that the money can be used tax-free, lowering the overall cost of an employee’s insurance plan.
You can offer FSAs in conjunction with a health insurance plan, or they can take its place of it entirely. For example, say your company has 20 full-time and ten part-time employees.
You could offer each full-timer a $500 contribution per year into their FSA and allow part-time workers $250 per year. It would give them plenty of incentive to use more hours throughout the year without costing your business too many overhead costs.
Provide Good Health Insurance Choices
Providing your employees with good health insurance choices will help them consider your benefits package. You want to make sure that they understand their options and that you offer a variety of plans to suit different needs. The SHRM 2022 Employee Benefits Survey states that 98% of organizations provide healthcare coverage to their employees.
When offering these choices, remember the popular plans and dental and vision coverage. These options have become more prevalent in recent years, so you should offer them if you want to stay competitive in today’s market.
Implement On-Site Clinics
One way to ensure your employees have access to medical care is by implementing on-site clinics. On-site clinics provide more than just medical care. They also offer nutrition and mental health services. Employees may be more likely to go to the clinic if it’s located in their workplace, which means you can save money on transportation costs.
By having an on-site clinic, you can reduce your employee turnover rate and improve employee retention rates. You can also enhance morale by offering these services right where people spend most of their time: at work.
Employ Wellness Programs
According to Wellable’s 2022 Employee Wellness Industry Trends Report, 35% of employers plan to spend more on wellness programs. Employing wellness programs is one of the best ways to keep your employees healthy and happy. Many companies offer free health screenings, blood pressure checks, and other services to help employees prevent significant health issues.
Wellness programs are also great for saving money on insurance premiums. If you can help your employees maintain healthier lifestyles, they’ll be less likely to go through with expensive procedures like surgeries or hospitalizations later down the line. And that means lower costs for everyone involved.
All it takes is a little planning to make these wellness programs work well for everyone involved.
Pay for Preventative Care
To save money and improve the overall health of your employees, you should pay for preventative care. Any employee who uses their healthcare plan to see a doctor or get a prescription is eligible for reimbursement, regardless of whether they have an illness.
Paying for preventive care saves money in the long run because it keeps your employees out of emergency rooms and urgent care centers where they receive treatment at higher prices. It also decreases their chances of developing chronic conditions, costing your business more money.
Take Advantage of Group Rates
Group rates are available to companies with 50 or more employees. Your company can take advantage of lower rates on health insurance and other plans, like dental and vision coverage.
The idea is simple. If you have a lot of people in one place, you’re more likely to attract a good deal from an insurer. If there’s enough demand for group coverage at your workplace, the insurer will only be able to charge a little because it’s guaranteed to sell its products, which saves everyone money.
Your Employees Will Be Happier and Healthier With a Good Health Plan
You are vested in ensuring your employees are healthy and happy as an employer. Providing access to good health care helps them get the necessary care they need to stay healthy, making them more productive at work and less likely to leave for another job.
In conclusion, offering insurance to employees is a great way to help them out. However, you need to ensure you’re offering the right type of insurance and that it only costs a little. Use these strategies as a guideline when deciding what types of insurance will be best for your business or organization.