Employers can cut group health insurance premiums using supplemental plans to fill holes. Group health insurance rates are determined in part by features that expose employees:
- Deductibles – the amount of expenses incurred before benefits begin
- Co-insurance – the percentage of charges born by the employee
- Co-payments – the employee cost share per doctor and/or hospital stay
- Provider network – providers that agree to accept in-network reimbursement
Premium rates charged for group health insurance go down as the exposure to out-of-pocket medical costs for employees goes up. How does an employer:
- Protect employee finances?
- Reduce health insurance costs at the same time?
No group feels the pinch more than growing families and the employers who help fund their insurance coverage. Group health rates are driven by employee census. Groups with a large number of women of child bearing age pay the highest rates, and often choose the plan with the biggest holes as a result.
Group Health Insurance Rates: Protecting Employees
Group health insurance rates with a higher deductible and co-insurance arrangement will have a lower premium cost. All goes well as long as your employees stay healthy: away from doctors and hospitals.
But we know that employees do get sick or hurt. Group health insurance plans with lower premium rates and big out of pocket employee expenses leave employees in a bind when they encounter a medical event. A low cost plan may end up costing an employer more in employee retention and lost productivity than it saves in premium.
Many employers elect a one-size-fits-all medical plan. Employers pick the coverage. Employees live with the consequences. Voluntary employee benefits allow employers to expand coverage, keep costs in check, and allow employees greater choice to protect their families.
Small Business Health Insurance Quotes - Group health insurance rates are determined by a variety of factors. The only sure way to lower costs in a strategic manner is to expand employee benefit choice with voluntary options. Allow employees to fill vital holes where needed, and migrate to a consumer oriented plan for the majority.
Reduce Group Health Insurance Rates & Help Employees
Voluntary employee benefits offer a simple way to lower group health insurance premium rates, protect employee lifestyles at the same time, and allow employees more freedom in tailoring a benefit plan that suits their needs.
Flexible Spending Accounts reduce the out of pocket costs for unreimbursed medical expenses – making large deductible plans more palatable to employees. A flexible spending account may reduce predictable expenses subject to deductibles by 1/3 or more.
Supplemental insurance pays cash benefits directly to employees to help them cope with unexpected medical events. Group health insurance plans with big holes and low premium costs pose less employee risk when coupled with supplemental programs that fill the holes. Employees are in charge of their health insurance configuration.
Those who are healthy and have a high risk tolerance can accept the group plan as is: holes and all. While those looking for greater security can fill holes with supplemental coverage. Everyone wins!