Balancing The Costs Of Health Insurance For Your Employees
Health insurance is one of the main benefits employees look for when they
take a position with your company, and a must have for any business.
Health insurance plans are available in a wide variety of coverage levels, with
differing costs to you and to the employee. The key to finding the right
policy is to choose one that balances the cost to your company with a
monthly premium your employees can afford.
Consider Offering Options
One of the best ways to keep control over your insurance costs and still
make sure your employees can handle the monthly payments is to choose a
few options and let your employees take their pick. Many companies choose
three options: the first is a low cost policy, usually with high deductibles that
mainly offers coverage for well visits and catastrophic coverage. The second
is a mid-range policy that keeps the premium down while offering lower
deductibles and better coverage. Finally, for those who are in need of a
more comprehensive plan and are willing to pay more, a third option is a
plan with a high monthly payment for the employee but low deductibles, if
any, and a very high level of coverage.
Each employee can make their choice based on their health care needs and
their monthly budget. By spreading out the cost among these policy options,
your company can find balance in the cost of health care.
Offer Health Savings Accounts
HSAs, or health savings accounts, are one of the newer and easier ways to
help employees save on their health costs while cutting back on the prices of
coverage for both you and the employee. Many companies offer their
employees a contribution to their HSA each year as an incentive. The HSA
allows the employee to pay for medical expenses such as co-pays from a
pre-tax account to which they contribute. These accounts are generally
offered in conjunction with a lower cost insurance policy, allowing everyone
to save money.
Remember that health insurance is one of the most important benefits you
can offer to your employees. There is no point in offering a policy that your
employees cannot afford. When it comes down to choosing a policy take the
time to gain an understanding of what matters most to your employees. In a
small company, it may even be possible to hold a meeting in which your
people can offer their input. Knowing what they think is reasonable in terms
of monthly payments and which coverage options are the most important will
help you to select the right group coverage for your company.