Select Page
Notifications
Clear all

Saving Money on Company Health Insurance

Page 1 / 2
(@Anonymous)
New Member

There is no doubt about it, the current system is no longer working—at least its not working for everyone. According to the Employee Benefits Research Institute, while there is a general, overall stability in the system of employer-sponsored health insurance, with large employers not yet willing to relinquish their role in the system; the percentage of small businesses with fewer than 200 employees that offer health coverage dropped in the last seven years, going from 68% in 2000 to 59% in 2007.

The effects of high healthcare costs go far beyond insurance premiums. In fact, impossibly high health insurance costs can be disastrous. A 2005 Health Affairs study entitled MarketWatch: Illness And Injury As Contributors To Bankruptcy, demonstrated a connection between the loss of health insurance and the rise in medical bankruptcy. The researchers concluded that there are four major problems with the financial safety net for American families confronting illness:

* First, even brief lapses in insurance coverage may be ruinous and should not be viewed as benign. While forty-five million Americans are uninsured at any point in time, many more experience spells without coverage. We found little evidence that such gaps were voluntary. Only a handful of medical debtors with a gap in coverage had chosen to forgo insurance because they had not perceived a need for it; the overwhelming majority had found coverage unaffordable or effectively unavailable. The privations suffered by many debtors—going without food, telephone service, electricity, and health care—lend credence to claims that coverage was unaffordable and believe the common perception that bankruptcy is an “easy way out.”

* Second, many health insurance policies prove to be too skimpy in the face of serious illness. We doubt that such underinsurance reflects families’ preference for risk; few Americans have more than one or two health insurance options. Many insured families are bankrupted by medical expenses well below the “catastrophic” thresholds of high-deductible plans that are increasingly popular with employers. Indeed, even the most comprehensive plan available to us through Harvard University leaves faculty at risk for out-of-pocket expenses as large as those reported by our medical debtors.

* Third, even good employment-based coverage sometimes fails to protect families, because illness may lead to job loss and the consequent loss of coverage. Lost jobs, of course, also leave families without health coverage when they are at their financially most vulnerable.

* Finally, illness often leads to financial catastrophe through loss of income, as well as high medical bills. Hence, disability insurance and paid sick leave are also critical to financial survival of a serious illness.

In light of this situation, where a lapse in healthcare coverage can have catastrophic effects, what can you, as the small business employer, do to protect your employees’ access to affordable healthcare without risking bankruptcy yourself?

Be Proactively Pro-Health
How much of the illness and injury that people suffer is preventable? As much as 70% of it. Surprised? According to a study by Health Affairs magazine, the U.S. ranks dead last out of 19 industrialized nations when it comes to reducing preventable deaths in patients younger than 75. You would think that Americans, with our bottom line business orientation, would have taken to the idea of wellness programs. After all, those companies that have gotten onto the wellness bandwagon have reported:

* A reduction in health care benefit use and health care costs.
* Lower rates of absenteeism.
* Reduced injuries and worker's compensation/disability claims.
* Increased morale and loyalty.
* Higher productivity.

Wellness programs at work don’t have to be complex or all-inclusive, but they should promote general health and exercise and address issues that have proven to have a negative effect on employee health and productivity such as smoking, obesity, stress, substance abuse, and preventable diseases such as the flu and other illnesses that can be warded-off with a vaccination.

Go Shopping
Yes, as elementary as it sounds, the advice your mother gave you about always shopping around applies here. Find the best deal you can and work from there. Start with the Internet, ask around and consult your local independent insurance agent.

Join the Crowd

One of the best ways to lower premiums is to join a group health insurance plan. Essentially, the way it works is the bigger the group, the lower the individual premiums. Depending on its size, your business may be large enough to form a group by itself. If not—or if your group is too small to trigger any cost savings—you can partner with other businesses to increase the size of your group. As long as you are partnering with others in your own state, there shouldn’t be a problem.

Saving for a Healthy Future
One of the most popular alternatives today is the health savings account. These are tax-exempt accounts that are used to pay for certain medical expenses. Both contributions to the account and withdrawals are tax-free—that goes for both employee and employer—and individuals can claim tax deductions on their 1040 forms. By using them, you can reduce your small business health insurance costs while giving your employees a nice tax break. What’s more, these accounts can accrue interest and are completely portable.

To qualify to establish a health savings account, you must already have a health insurance plan with a high deductible in place and available to your employees. According to the U.S. Office of Personnel Management, a high-deductible health insurance plan has a minimum annual deductible of $1,100 for the insured and $2,200 for the insured and their family and a maximum annual out of pocket limit of $5,600 for the insured and $11,200 for the insured and their family.

Those who benefit the most from health savings accounts are those who are in good health and who do not regularly see doctors. However, for those who have more regular or in-depth medical needs, they can be supplemented with other, more targeted insurance options.

Cutting Costs by Cutting Coverage
When all else has failed, cutting coverage may be necessary. This does not necessarily have to mean a wholesale cutting of benefits, though that is usually what the phrase “cutting coverage” implies and doing that will certainly cut health insurance costs for your company. It can also mean shifting the cost burden from you, the employer to your employees. One thing is for sure—and this is why I save this for a last resort—is that this will be a very unpopular thing with your employees.

Be sensitive to the needs of your employees and see what areas of the healthcare benefit they need most. If you can cut around those areas, that will minimize the impact of the cuts on your people. Doing this may also give you an idea of how to maximize your coverage while minimizing, as much as possible, the cost.

The Bottom Line

There are a number of individual things you can do to reduce the cost of healthcare benefits, but you should also consider a combination approach with a wellness program as well as one or more of the cost-cutting alternatives. If you manage this right, deal with the issue of health on a number of levels rather than just one, your employees will be happier and healthier because of it and all the more productive as a result.

Quote
Topic starter Posted : 04/06/2008 2:03 pm
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

I hope it gets solved with the next president

ReplyQuote
Posted : 01/07/2008 10:28 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Underwriting begins after your signed application has been returned to the life insurance company. At this time, an insurance underwriter evaluates your case. This includes evaluating the answers to certain questions on your application, health and lifestyle habits, results from your medical exam, and other factors based on your individual case. The insurance underwriter will then determine if you qualify for the coverage applied for and establish an appropriate rate.

This process takes an average of 3 to 8 weeks to complete, depending on the needs of the life insurance company. In order to help keep this processing time to a minimum, be sure to submit all of the required information, such as medical records and employment verification, in a timely manner. The life insurance company will call you if they’re missing any important documents that are valuable in underwriting your case.

In the meantime, you should consider binding your term life insurance policy. This means taking out a temporary life insurance policy for the time it takes to underwrite your case. This will ensure that you’re protected if something happens to you while your case is being evaluated. Ask your life insurance agent about this coverage option.

ReplyQuote
Posted : 20/08/2009 6:58 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Very nice suggestion. thanks for sharing the information about company insurance.

ReplyQuote
Posted : 02/09/2009 7:30 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

that a really very good ideas thanks for sharing this information. its so useful for us all here.

ReplyQuote
Posted : 08/09/2009 4:55 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Wellness programs should be at the top of every companys list to save on healthcare. Since many of us are self employed and the healthcare cost is coming from our own pockets, we need to be focusing on what we can do for our own wellness. Not only will we be healthier, but happier too.

ReplyQuote
Posted : 08/09/2009 9:39 pm
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello
all world have a love-hate relationship with health insurance. They love to have it, but they hate to pay for it. And with stagnant wages and skyrocketing premiums and co-pays, who can blame them? While there isn't much in the average American's control when it comes to their health insurance, there are some things you can do to save a few dollars here and there.
Thanks

ReplyQuote
Posted : 18/12/2009 7:59 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello Friends,
Different companies provide a range of coverage and price options so it makes sense to search for the policy that best fits your needs and budget. An independent insurance agent can get you a three to four quotes from companies that offer the kind of coverage you need. If you don’t enjoy dealing with insurance agents (most people don’t) you can always ask family or friends about what policy they have and how it has worked for them.Before you purchase insurance you will want to check the financial health of a company and learn more about its reputation. The best source of information on this topic is the AM Best ratings. The A.M Best Company insurance companies based on their overall quality and strength. It gives insurers letter grades like A++, A+, A, A-, and so on. Higher ratings mean the company is safer from collapse. Don’t buy insurance from any insurance company with an A.M. Best policy holder rating of less than “A” unless you have no other choice.
Thanks.

ReplyQuote
Posted : 02/03/2010 5:26 pm
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello friends

1. Take the free money!
If your employer will pay all or a portion of your health insurance premium through a group plan then enroll! However, note that many employers will only pay the premium for the employee and not the employee's family members. This is where you will want to compare individual health insurance plans because individual health rates are much cheaper than group rates because of the differences in underwriting (it boils down to the fact that generally speaking in a group health plan everyone is accepted into the plan - even those with major health issues while on the individual side only people that are for the most part healthy are accepted).
2. Review your coverage annually.
Health insurance rates are constantly changing. You will want to review your coverage on an annual basis to be sure that the company and plan that you have is competitive with what is on the market. You and your family's health insurance needs will change as well so be sure and add or remove options and benefits to customize the plan to best fit your needs.
3. Compare different company's quotes.
It is quite amazing to see some people just accept the first plan that they happen to come across especially if they have never even heard of that particular health insurance company before. With the ease of the Internet you can do what used to be a days worth of research in about half an hour. You will want to go with a well known and dependable (probably nationwide) health insurance company but be sure and compare health insurance quotes from top companies in your zip code to get an idea of what is available.

Thanks

ReplyQuote
Posted : 09/03/2010 4:16 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello friends

by going with a less expensive health insurance plan by comparing the total cost for premiums plus all co-pays and other out-of-pocket costs for non-covered services that you expect to use during the plan year. Depending on how the policy is written, you might actually end up saving more by paying higher premiums for a plan that has lower co-pays and a broader range of covered services.
Participate in your employer's health insurance plan. Because employers direct a large volume of business to the insurer, the employer is generally able to negotiate more favorable rates, meaning you can save money on your employer-sponsored health insurance premiums over buying an individual health insurance policy directly from the insurer.
Make sure your employer deducts your health insurance premiums from your pay on a pre-tax basis. What that means is that your insurer figures out your gross pay, deducts your health insurance premium as a reduction to your gross pay, then calculates and deducts your income taxes. By reducing your overall gross income, you will have less taxable income and pay lower federal income taxes. So while this doesn't really save you money on your health insurance premiums, it does put more money in your pocket--which is the goal, right?
Enroll in your employer's flexible spending plan. A flexible spending plan allows you to direct a certain amount of pre-tax dollars from each pay check into an account that you can submit claims against. By contributing pre-tax dollars, you in effect reduce your overall gross income resulting in lower federal income taxes paid for the given calendar year. Depending on the rules of the medical flexible spending account, you submit receipts for things your health insurance doesn't cover (co-pays, certain over-the-counter medications, certain medical devices) and get reimbursed up to the maximum contribution you elected.
Buy your prescriptions through a mail order pharmacy. Most mail order pharmacies will permit you to purchase a 90-day supply of your prescription medications for the same co-pay you would pay for a 30-day supply at a traditional bricks-and-sticks pharmacy. Ask your physician to write your prescriptions to dispense a quantity of 90 days' supply with enough refills to last one year. If your physician balks, explain to her why you are making the request. Most doctors are familiar with this drill and are more than happy to accommodate you.

Thanks for all friends

ReplyQuote
Posted : 11/03/2010 8:04 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello
Tip 1: Call your health insurance company

When you first get your premium increase notice, call your health insurance company. They have people who can help you find other plans that you are eligible for. These plans may have different coverage, and different terms, so pay close attention. I did this last month, and found a plan with a lower premium. I had to pay $10 more on my office visit co-pay, and accept a $200 deductible for prescriptions, but the savings in the premium more than offset those costs. Be careful, though. Make sure you understand the plan before you sign on. Sometimes a much lower premium masks a plan that has such a high deductible that you pay your expenses out of pocket and still have to pay the premium. In the long-term that can cost much, much more.

Tip 2: Comparison shop

Do a little recon. Check online for other plans. I found my plan from healthinsurance.org resource center. This site compares plans available in your area, and lets you see the benefits and costs, side by side. Realize that your employer’s plan may not be the best. Even if you don’t go through your employer, it is possible to find a group health insurance rate, as an individual or family. Now a days, it is easy to check for the best quotes on the internet as more and more insurance companies using the internet to court and educate customers.

Tip 3: Look for incentives

Some employers offer incentives for healthy lifestyles. For that matter, so do some insurance companies (but not many). Check with your human resources department to see whether your employer will kick in extra toward your premiums if you are certified as a non-smoker, or if you make regular use of gym facilities or have a gym membership. Find out the enrollment requirements so that you receive proper certification in time to take advantage of it.

ReplyQuote
Posted : 16/03/2010 10:26 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello
1. You might assume generic drug costs are all the same, but compare them anyway. Prices can vary widely depending on the kind of prescriptions and coverage you have. Shop around at pharmacy chains like Walgreens and Costco to see if your generic drugs cost less there than under your health plan. You may be able to find some savings. Charlie Lichtman, a San Francisco man who recently received notice his health premiums were going to rise 38%, cut his generic-drug tab by about $2,300 a year this way. See this Vital Signs column from early March for more on his quest for answers and savings.

2. Don’t be afraid to question your doctor. Many times potential savings and even patient safety concerns start at the doctor’s office. If your doctor wants to send you for a test, it’s a good idea to ask how the results would affect the course of your treatment. Patients are wise to be skeptical if the doctor is unwilling to discuss his or her reasoning – and both the risks and benefits of doing a particular test.

3. If your doctor sends you for a blood test, consider your options before going to the nearest laboratory. An independent lab like Quest Diagnostics may be able to run the same blood test just as effectively for less money.

ReplyQuote
Posted : 02/04/2010 7:55 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello
Sound health is an indispensable feature of every individual's life. No targets and success can be achieved if we are physically unwell. In order to safeguard this central aspect of our life, health insurance is the need of the hour.

Health insurance as we all know is the best way to secure your health against all expected and unexpected problems. Due to this almost every individual seeks to acquire a health insurance policy.

At present there are many companies offering health insurance. While going for a health insurance policy you will confront a choice between private and government insurance. Prior to opting for either policy, you should know that with a private health insurance you would have an access to luxurious private hospitals, wide range of private doctors to choose from and mostly immediate treatment. While in a government health insurance scheme the lifetime health cover penalizes people who take out health insurance later in life with higher premiums. If you take the policy after your 31st birthday you will be required to pay a 2% surcharge annually up to 70%. So for instance if you acquire the policy at the age of 50 you will have to pay 30% more than a person who joined at the age of 30.

Government health insurance policy also comes up with a Medicare levy surcharge according to which unmarried people earning more than $50k and married couples with or without children earning more than $100k will pay an extra 1% Medicare surcharge in addition to 1.5% Medicare levy most people pay. But this extra annual expenditure of $500 to $1000 can be avoided by opting for hospital insurance.

ReplyQuote
Posted : 08/04/2010 4:48 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Hello friends

Rising health care costs have outpaced inflation in a dramatic fashion for many years and that trend is not expected to slow down anytime soon. With health insurance rates trending upwards right alongside of health care costs there are many who are seeing their monthly health insurance premium payments slowly eat into their discretionary income.
It is obvious to many that something needs to be done to keep health insurance costs under control. The alternative of not having health insurance coverage presents a graver risk than many are willing to admit. It is not unimaginable for a 3-4 day stay in the hospital after even routine surgery to approach a six figure total medical bill. There are services that are springing up to assist consumers negotiate lower medical fees from hospitals and doctors but even if a $100,000 hospital bill is negotiated down to $70,000 - how many are willing to sacrifice their nest egg or teeter on the edge of bankruptcy?

Thanks

Diesel Models

ReplyQuote
Posted : 05/05/2010 2:30 am
(@Anonymous)
New Member

Re: Saving Money on Company Health Insurance

Thanks for the information regarding insurance.

ReplyQuote
Posted : 04/08/2011 11:54 am
Page 1 / 2
Share: