5 Ways To Cope With Health Insurance Increases

Having health insurance available for your employees is certainly a great way to attract the right talent and retain them to avoid turnover. However, every year, it seems that health insurance costs and premiums are on the rise. How do you cope with these increases and pass off the difference to your employees without a big fuss?

1. Talk to Your Employees

   First, be sure to share the possibility of health insurance increases with your employees. Saving the increases as a “surprise” for the next year will not cultivate goodwill. However, you will keep their respect if you sit down with them and discuss the issues.

   Have an employee meeting. Tell them the situation, and ask for their input. Perhaps you could create a poll and have all employees mark their choices for dealing with the increases. Whichever way you choose, keeping them in the loop will foster much more loyalty with you and the ultimate choices you make.

2. Agree to Increase Co-Pay

   One option you may consider to keep health premiums low is to raise the co-pay. Most insurance policies have an amount that an insured must pay at the time health care is given, usually around $20. Increasing the co-pay by $5 or $10 can help keep monthly premiums lower.

3. Raise Deductibles

   When it comes to saving on health care premiums, raising the total deductible may be a better choice rather than cutting benefits. This means that each employee would pay more out of pocket each year IF they had larger health bills, but their monthly premiums would stay lower.

4. Require Employees to Pay a Larger Share of the Premium

   Many small businesses agree to pay most of the health care premiums. Some pay upwards or 75% up to 100% of the monthly premiums as a benefit to their employees. However, when premiums skyrocket, it may be necessary to make employees pay a more equitable share. Splitting the cost 50/50 is reasonable and helps keep your business from going under from high insurance expenses.

5. Change Insurance Companies

   Ultimately, if your current insurer raises health costs too much, you may need to research other alternatives. Talk to your insurance agent about other insurance company options that are more affordable.