Reducing health insurance costs
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.
Q: How can I reduce the health insurance costs for the employees of my janitorial company in Nevada?
A: There are two ways: 1) buy less coverage and 2) buy more efficient coverage. The first ("buy less insurance") is accomplished by considering the new crop of health insurance plans known as "mini-med" or "basic" medical insurance. A policy that offers $5 million of coverage is worthless if you cannot afford to pay the premium! A policy that offers $250,000 coverage at a price you can afford would be far more valuable to your employees. The second ("buy more efficient coverage") is accomplished by modifying your health plan design to provide better advice to employees and allowing them more choices in selecting the coverage that is best for them. This might involve adapting the new Health Savings Accounts, using PPO discount savings cards, or other cost-saving measures. But what is cost-efficient for one employee is different from what works for another. Employers can achieve savings only by empowering employees with access to good professional support in making these choices. Fortunately, this entire service to help an employer re-design a health plan for greater efficiency and cost savings is now available through Freedom Benefits Association at a flat fee of $150.
Summary
More resources:
Freedom Benefits Association
FreedomBenefits.net