March 22, 2022

Insurance Costs Go Down with Higher Enrollment

Health insurance costs continue to rise. According to a recent Gallup survey, more than three-quarters of Americans expect their prices to increase even more in the next two years. Those statistics can scare some employers from wanting to provide health insurance benefits, but you need them now more than ever.

Can a group health insurance plan for your business can lower costs for everyone? You bet! Whether you’re a mom and pop operation, or an enterprise business with employees, a group plan can save you money.

Upsides for Both Business Owners and Employees

Are your employees seeking out the care they need to happily and safely perform their jobs? According to Gallup, a significant number of Americans are deferring care, forgoing care altogether, or borrowing money to get it.

Helping them get the care they need can actually improve worker performance, reduce sick days and boost morale. Plus, preventive health care costs can stave off more expensive treatments or even disability costs down the road.

Other benefits include:

– Receiving tax credits and other tax benefits.

– Job satisfaction and improved recruiting.

– Healthier employees who are more productive.

– Increased job security.

Group Health Plans for Small Businesses

Small business owners can save too. A small business can be up to 100 employees. The more employees you have, the more you save, and even going from one person to two means savings. Premiums are 10 percent lower per person, on average, with 40 percent lower deductibles versus individual enrollment.

Health insurance for business owners goes to work for you, bringing rewards in real dividends.

Group plans, which include individual’s family members, are usually more affordable for employees and offer more extensive coverage. You can split up premiums with employees.

What’s the Tax Credit?

The SHOP tax credit applies if you have fewer than 25 full-time employees and offer health insurance to all of them. You can receive up to 50% off your contributions toward employee premiums. This will drastically reduce the cost of providing benefits to employees.

You can even set up your health insurance so employees can pay their premiums with pre-tax money. When you provide benefits and cash-saving solutions, you will have happier employees.

Another option to consider for group savings is partially self-funded coverage. As an employer, you cover some of the potential cost for employees’ medical care every year. The trade-off is that you’ll receive a sizable refund at the end of each year if those costs are lower than forecast.

This is an excellent option for employers with young and healthy employees that rarely visit the doctor.

Did you know that a mid-sized small business (50-99 employees) can typically negotiate for a lower premium? Depending on the size of your business, you may have some leverage with your premium payments.