Options to Reduce Health Insurance Premiums for a Business
You can reduce health insurance premiums in a number of different ways depending on your overall preferences. Learn about options to reduce health insurance premiums for small businesses with help from an experienced insurance professional in this free video clip.
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My name's Tim Tracy, co-founder of InsuringCT.com, and this is how to reduce premiums on your health insurance plan for small businesses. Everyday I get the question, how can we reduce our premiums on our health insurance plan? Costs have been increasing astronomically, and this is one way that you can do it. The first is to sit down with your agent or broker and review the different options available. Nowadays, you have a number of different cost-saving options available to you. Some of these require changing your plan design. So, more often than not, if you're on a plan with low co-payments and low deductibles, in order to lower that premium, you're going to have to look at increasing those co-pays and increasing those deductibles. Another option is to review consumer-driven health plans, such as health savings accounts, also known as HSAs, or health reimbursement accounts, also known as HRAs. These accounts allow for much lower monthly premiums, because the deductible is higher. But an employer can fund a portion of that deductible, which decreases the actual amount responsible for the employee, and still see a bottom line cost savings by utilizing these creative benefit plan designs. An HSA, or a health savings account, is a high deductible plan. As an employer, you're allowed to contribute a portion into that account, as well as the employee, on a pretax basis that allows him to set aside money to pay for those deductibles with pretax dollars. The HSA option, or health savings account option for an employer, allows for a high deductible health insurance plan that an employee, as well as an employer, can contribute funds into an account to help pay for that deductible. You also have an HRA, or health reimbursement account option. This is a great option for small employers, because not only do you have the high deductible plan, but you don't have to fund that account until those costs are incurred. So, that allows you as the employer to keep those monies in your account and not have to pay them until they're due. And anything that does not occur during the year from a claims standpoint, then that money is additional savings to you on top of the premium. My name is Tim Tracy, co-founder of InsuringCT.com, and this is how to lower your premiums on your small group health insurance.