Managing Group Health Insurance Costs: Tips for Employers

As an employer, offering a group health insurance plan can be critical to your employees’ overall compensation packages. As a core pillar of most workplaces’ employee benefits portfolios, group health insurance may offer members the opportunity to secure access to essential preventive care and medical services at lower rates than they might otherwise find. Furthermore, providing health insurance can also help your business by improving productivity levels, limiting absences and making employees feel valued.

Still, while offering group health insurance to your employees has many advantages, doing so can also represent a significant financial investment. Even large and prosperous commercial enterprises must responsibly manage their expenses, including those related to employee benefits. With this in mind, your organization should implement comprehensive steps and strategies to identify ways you might be able to stretch your dollars further and maximize the cost-effectiveness of your group health insurance costs.

Ways to Effectively Manage Group Health Insurance Expenses

Your organization should leave no stone unturned as it seeks to offer employees attractive group health insurance coverage while optimizing return on investment. To achieve this goal, consider the following possibilities:

• Adjust available plans. You may be able to adjust your group health insurance offerings to reduce costs while retaining adequate coverage for your employees. For example, switching to plans with higher deductibles while offering health savings accounts, which can help employees reach their deductibles, may result in lower costs.
• Educate employees. Improving your employees’ health insurance literacy can help stretch their health care dollars further and increase the cost-effectiveness of their coverage. As members of your group health insurance plan gain a greater understanding of their policies, they can spend more efficiently, potentially leading to lower costs for your organization.
• Add telehealth options. Telehealth services have become increasingly popular in recent years and may provide employees with cost-effective and convenient options to seek certain types of medical care. By including these more affordable options in your employee benefits portfolio, your organization may be able to continue providing access to essential services while reducing expenses.
• Prioritize wellness. Employees who maintain good health and wellness may require fewer medical services and file fewer claims. Your business can enable better employee well-being by establishing workplace wellness programs, such as smoking cessation and fitness center membership discounts. Similarly, prioritizing healthy work-life balance can help limit employee burnout and stress levels, which can lead to or exacerbate physical and mental health issues.

We’re Here to Help

Insurance Solutions USA is composed of a dedicated and knowledgeable team of health insurance professionals. With over 20 years of experience serving businesses and their employees, our team is well-equipped to help you implement and maintain an ideal group health insurance plan while optimizing your costs and return on investment. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.