It’s no secret that health insurance has gotten more expensive in the past few years. And unfortunately, it doesn’t show signs of stopping, with rates expecting to increase by up to 40%. For businesses, these group health plan increases can pose a serious risk to your bottom line. If you want to save a few dollars on your group insurance, here are a few options to help.
The Current Health Insurance Marketplace
Before diving into the tips on how to fight back against group health plan increases, it’s important to understand what’s causing the overall rise in costs.
The health insurance market is facing significant challenges right now, and they’re being brought on by three main causes:
- Weakened economy
- Inflation Reduction Act
- Delayed COVID claims
Because of these symptoms, many employers are seeing double-digit group health plan increases, forcing them to make tough decisions to manage costs.
Ways to Reduce Group Health Plan Increases
With costs continuing to rise in nearly all sectors, employers are looking for any relief. Luckily, there are a few ways you can offset group health plan increases without impacting your employees’ coverage.
Option 1: Plan Selection
Naturally, selecting a more affordable plan is often one of the simplest ways to fight group health plan increases. Downgrading from a PPO plan to an EPO or HMO can lower premiums by potentially up to 20%.
Just keep in mind that if you choose this option, you’ll likely find reduced network access and a referral requirement to see specialists. However, benefits typically still include urgent care coverage outside of Nevada and emergency care coverage nationwide.
Option 2: Association Health Plans & Level-Funded Plans
Another way to offset group health plan increases is to switch to either an association or level-funded health plan. They offer more flexibility compared to traditional fully funded plans and may provide lower premiums for certain groups.
Association and level-funded plans are best suited for organizations with younger, healthier employees, as you can save the most on your premiums with a low claim utilization.
Option 3: High-Deductible or HSA-Compatible Plans
With higher deductibles come lower premiums. Switching to a High Deductible Health Plan (HDHP) is a quick and easy way to cut back on your premium costs. And HSA-compatible plans allow tax-advantaged savings for medical expenses.
Of course, high-deductible plans have… high deductibles. So they’re best for employees needing catastrophic coverage without high premiums. But remember that your out-of-pocket costs will be much higher, so plan your finances accordingly — which is where an HSA might come in handy.
Final Advice on Offsetting Group Health Plan Increases
Unfortunately, the rising cost of health insurance is unavoidable. But there are strategies that can help you offset group health plan increases.
No matter which option you choose, always review all insurance company options each cycle. Plans change annually, and comparing plans can reveal lower-cost alternatives. Understanding your options will help you make informed decisions that will benefit both your company and your employees.
If you’re not sure about which plan is right for your organization, contact us at Health Benefits Associates. Our team of local agents are highly knowledgeable in the local Nevada insurance marketplace and will walk you through the small group options to choose the plan that’s right for your needs and budget. Schedule an appointment by calling 775-828-1216 today.