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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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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posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date.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.


More resources:

Freedom Benefits Association