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Home General 7 Ways to Lower Insurance Costs for Your Business
 * General


7 WAYS TO LOWER INSURANCE COSTS FOR YOUR BUSINESS

By
Sandy
-
17/11/2022
22
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As a business owner, you’re always looking for ways to save money and increase
revenue. Your goal is to make a profit, but insurance costs can sometimes get in
the way of that. However, you don’t want to skimp on your employees’ health
benefits. Here are seven tips to help you lower your employee benefit costs.

Table of Contents

 * Review Your Policy Annually
 * Choose the Best PBM
 * Offer a Health Savings Account
 * Consider Bundling Policies
 * Consider Working With a Broker
 * Pay Your Premium Annually 
 * Final Thoughts


REVIEW YOUR POLICY ANNUALLY

Something many employers often lose sight of is how much insurance their staff
needs. Your business is constantly changing and growing, so your insurance needs
will also change. Often, business owners are over or underpaying premiums for
staff, which can lead to a host of troubles.



Review your policy every six months to a year to ensure you and your staff are
still adequately covered. If not, you may be able to adjust your coverage and
free up space in your budget. Paying for coverage where you don’t need it is
little more than wasted money, so you want to ensure every dollar counts.


CHOOSE THE BEST PBM

Prescription coverage is an invaluable aspect of health insurance plans.
However, with all the medication options available, managing your prescription
plan can take time and effort. Fortunately, pharmacy benefit managers, or PBMs,
can help ease that burden.

When selecting a pharmacy benefit management company, choose one that suits all
your business needs. Inquire about clinical trials and specialty drugs, and use
the latest research to ensure your PBM is working hard to keep your prescription
coverage down.

Get Quotes From Multiple Companies

When the time comes to renew your policy, set aside sufficient time to compare
shops so you can feel confident in your choice. As with any service-for-hire,
it’s wise to get a handful of estimates or quotes before settling on the best
company.

It might be hard to commit to changing companies if you feel loyalty to your
current plan. However, you might be surprised how much rates vary between
insurers. By doing comparison shopping, you could save a significant amount of
money on your premiums.


OFFER A HEALTH SAVINGS ACCOUNT

A Health Savings Account, or HSA, is a savings plan that allows employees to set
aside a portion of their pay each month for healthcare costs. HSAs enable
employers to pay lower premiums without sacrificing the quality of care for
their staff. They also give employees more control over their healthcare.



The main thing to remember about HSAs is that employees can only use them with
HSA-compatible insurance policies. When you start comparison shopping for rates,
make sure your insurer offers HSA policies.


CONSIDER BUNDLING POLICIES

When you offer comprehensive health coverage, you might have multiple plans
across several companies. However, you don’t need a different policy for
medical, dental, vision, and prescription coverage. Instead, talk to insurers to
find ways to bundle your policies to streamline the coverage.

One of the main benefits of bundling policies is that they’re more manageable
for you and your staff to navigate. However, examine all coverage options to
ensure a plan isn’t too good to be true.


CONSIDER WORKING WITH A BROKER

Insurance brokers are valuable third parties who can be intermediaries between
you and your insurance agency. Brokers have extensive experience navigating the
insurance industry, so they can help you find the best policy for your company.

Offering employee health benefits is a significant financial responsibility. If
you have any doubts about your ability to navigate insurance waters, a broker
will be able to guide you. They’ll help you find a policy that suits your budget
and, ideally, saves you some cash in the process.


PAY YOUR PREMIUM ANNUALLY 

Paying your insurance premium annually instead of monthly is another way to save
cash each year. While it may only be possible for some business owners, paying
in one lump sum annually tends to lower monthly costs significantly.

Paying your premium in full is worth considering if you have the cash flow
available. Not only will a lump payment cut costs, but it will also be one less
monthly bill you have to keep up with. However, remember to set aside funds each
month to avoid struggling when your bill arrives.


FINAL THOUGHTS

Employee health insurance is a necessary expense, but that doesn’t mean it has
to break the bank. By following these tips, you can save money on your premiums
and stretch your budget further. Do what’s best for your business and shop
around for the most affordable policy that meets your needs. Finding the right
plan could end up being easier and cheaper than you think.




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