How to Keep Your Health Insurance Costs Under Control

A recent study of 2,012 private and public businesses conducted by the Kaiser Family Foundation, health insurance costs continue to increase for U.S. companies and their employees. In 2019, employer-sponsored health care premiums cost an average of $20,576 for family plans and $7,188 for individuals–and the costs are only expected to rise.

But don’t fret. There are things you can do to keep health insurance costs under control. Here’s a look at seven:

1. Understand Your Needs
In order to get the best deal possible, you need to understand your employees’ needs–and then negotiate the best rates based on those needs.

Before you sign on the dotted line, take some time to analyze your spending from the past years. Then compare those figures with your claims performance to make sure they accurately align.

If they don’t, it’s time to negotiate better rates (or partner with someone who can negotiate on your behalf).

2. Use Data to Make Decisions
If you aren’t sure exactly what your employees need from their health insurance and haven’t analyzed how much you’ve paid in the past, you’re probably paying entirely too much.

Using data to guide your decisions will help ensure that you are not overpaying.

3. Leverage Your Low-Consumption Employees
Not all employees need the same level of health insurance. Some consume a lot of services, some don’t. One way to save money is to help your low-consumption employees choose plans that lower their monthly coverage costs (but may come with higher deductibles).

4. Educate, Communicate and Re-Educate
The decisions you make about health insurance affect your employees. And the decisions your employees make about health insurance affect you. That’s why it’s critically important that you work together with your employees to make smart health care decisions.

In other words, you need to educate, communicate and re-educate.

Educate yourself about all of the data and options. Communicate this information to your employees, listen to their questions and feedback, and keep the discussion going. Then analyze the information they’ve shared with you to re-educate yourself and make smarter decisions about the plans you offer.

The process may sound cumbersome, but it can save you money.

5. Embrace Technology
Many health plans now include free or low-cost telemedicine options that allow your employees to speak to physicians either over the phone or via video.

And often these options come at lower monthly costs to both you and your employees. Explore these options, find some that you are comfortable with and embrace them. It could save you money.

6. Keep Your Employees Healthy
Obviously, the easiest way to save money is to keep your employees healthy throughout the year.

And it’s easier than you think.

Start a wellness program. Offer discounts on gym memberships. Embrace and encourage healthy behavior in the office. If you keep your employees healthy, they’ll save themselves (and you) money this year.

7. Avoid Common Mistakes
It can be difficult to put together a plan that meets your needs without breaking the bank, but it’s possible–especially if you avoid three common pitfalls:

• overlooking employee needs,
• pulling the purse strings too tight, and
• keeping your own counsel.

These mistakes are common and can wind up costing you (and your employees) a lot of money. So avoid them by finding a partner who can help you.

If you’re ready to start saving on health insurance, connect with Flagler Financial today.