Health insurance covers a variety of things – from your annual examinations to your prescriptions to the hospital beds new moms recover in – it’s a great benefit to provide to your team. Providing health insurance can be expensive, but it doesn’t have to be. Although an employer and benefits survey stated that health benefit costs could rise between 4% and 6% this year, we have compiled a list of strategies you can use to combat rising healthcare costs for your business. Check it out below.
At Decisely, our team is comprised of 100% licensed brokers that invest themselves in your small business to find the best benefit plans for you and your team. Again, while you don’t have to offer health insurance if you have fewer than 50 full-time employees, it is helpful to retain and attract top talent. All of which helps your business grow and continue its success.
Ways to Combat Rising Healthcare Costs
1. High Deductible Plans
High deductible plans call for employees to pay more out of pocket. However, the upside is that paired with a health savings account, high deductible plans are manageable for both you and your team. Health savings accounts (HSAs) allow employees to allocate some of their wages into an account to cover out of pocket medical expenses. The best part: employees do not have to pay taxes on the funds that go into an HSA, which creates savings all around.
2. Direct Primary Care
Another method is direct primary care. Direct primary care occurs when employers partner with physicians to provide affordable preventative and primary care. Direct primary care is typically structured as a membership model that comes with a fixed monthly rate. Physicians charge users a monthly fee and in return, you and your employees have unlimited access to a primary care physician (as opposed to billing a patient’s insurance). On average, direct primary care costs are less than $1,000 per year per employee. Direct primary care isn’t a solution for more more serious needs, like cancer or heart attacks. Depending on your company’s current healthcare expenses, it might be an option to consider, given that it can save a small business nearly 15% on its health insurance costs.
3. Employee Wellness Programs
For the sake of building a happy and productive workplace, it’s extremely important to help your team remain healthy. You can do this with a comprehensive wellness program that encourages employees to avoid smoking, exercise, take breaks throughout the workday, encourages flu shots, and more. Many businesses have found that for every dollar they invest into their wellness program, they wind up saving over $3! Plus, these kinds of programs also serve as fringe benefits to keep employee satisfaction and morale up. That’s what we call a win-win situation.
You know your business best – you understand its needs and the wants of your team. Consider if a high deductible plan is fitting. Evaluate an HSA. Look into direct primary care. You can keep costs down, and you don’t have to do it alone. Take the time to evaluate these options and reach out so we can get you started on the best plan to keep healthcare expenses low for your company. With the right guidance and support from your broker, rising healthcare costs will be one less stress for your business.