Many small businesses have found healthcare costs expensive and reducing their spending can be a challenge. According to the Bureau of Labor Statistics, only 57 percent of workers at firms with 100 employees or less have access to employer sponsored health care. In a CNBC article, the topic of rising healthcare costs were explored, emphasizing these five options for small firms:
Negotiate. One way to reduce healthcare spending, according to CNBC, is negotiating on a group health insurance premium. Jeffrey Ingalls, president of The Stratford Financial Group, a New Jersey full-service insurance brokerage explained that “a good broker can point out factors that the insurer should also take into account to lower the premium.”
Try the SHOP Marketplace. Last year, small businesses with 50 or fewer full-time equivalent employees started turning to the SHOP Marketplace. You may be eligible for tax credits and may save on healthcare costs. You may also find more options as compared to a single small group health plan. If you haven’t enrolled in SHOP yet, you can do that anytime of the year.
Convert to individual plans. Another smart move to do, so you can save on healthcare costs, is to convert to individual plans. To continue offering employee benefits, you can reimburse employees for their premium.
Explore direct primary care. A growing number of primary-care physicians are partnering with employers to deliver direct primary care on a fixed monthly membership model. This gives your employees access to care however, it doesn’t offer comprehensive coverage that includes catastrophic illness such as cancer.
Health Care Sharing Ministry. Health care ministries are organizations whose members share “a common set of religious and ethical beliefs” and share medical expenses among themselves in accordance with these beliefs. The idea is that members donate a certain amount monthly and are able to apply for a when a medical expense is incurred. Often, there is a threshold to apply for assistance.
To know more about getting affordable coverage for your business, contact us today.