When was the last time you thought about your group health insurance and benefits offerings?
Maybe it’s not something you think about every quarter (or even every year) but in today’s economy, employer-based health insurance and benefit packages have never been more important.
The Growing Cost of Group Health Insurance
According to the National Business Group on Health annual survey of nearly 150 of the nation’s largest employers, the cost of worker health benefits is projected to increase by 5.3% in 2021.
To offset the rising cost of group health insurance premiums, you may be tempted to cut your employee benefit offerings. Don’t.
Providing your employees with a comprehensive benefits package may be pricey, but it could help you to avoid costly turnover in the future. Research shows that there may be a correlation between job satisfaction and good benefits packages.
So, how can you lower your firm’s costs without sacrificing coverage?
1. Level Funding
Exploring level-funded health plans could save you between 10%-15% on your group health insurance costs. The plans are offered by industry-leading providers and boast a nation-wide network of hospitals and doctors that your employees will have access to. The best part of level-funded plans? A return of premium option if your claims costs are lower than expected.
2. Reference-Based Pricing
In some cases, reference-based pricing could save your firm even more money than with a level-funded plan. These plans bypass the traditional provider network, giving you access to any doctor or hospital in the country, and offer an advocacy team to help you pay the lowest out-of-pocket costs. Typically, medical providers are reimbursed, saving you and your employees thousands of dollars annually. Reference-based pricing puts the control in the hands of the business owners, not the insurance companies.
3. Health Savings Accounts
When paired with a high-deductible plan, Health Savings Accounts (HSAs) are a great way to help your employees save for unexpected medical costs. Since becoming available, these plans have expanded in popularity and surpassed 25 million accounts. Furthermore, according to Denevir’s 2019 Year-End HSA Research Report, the number of HSA accounts continues to grow 13% each year.
Finding Your Best Fit
Did you know that as a member of the Washington State Bar Association you have access to unique group insurance and benefit options at special pricing? We know that when it comes to your business and group health and benefits offerings, one size does not necessarily fit all.
Need some help deciding which products may be a good fit for your firm? Our licensed benefits counselors are standing by to help you find your best fit. Visit the Employer Group Solutions page today.