6 Ways to Reduce Health Insurance Premium
- You must understand that if you submit the same exact ages, sex, (census) and medical conditions to a carrier through multiple brokers the premiums will be exactly the same for each carrier. The more quote request a carrier receives for the same firm, the less likely the sales or marketing department will be willing to work in your behalf. They don’t take it seriously that you want to place your business with them.
- You may have some employees who are happy to pay less and have a high deductible and high out of pocket. They may be young and single and don’t use their coverage often. Other employees who are older or have families may want a richer plan. Nearly all carriers offer two or more plans and you as an employer can pay your portion which is a minimum of 50% of a single employee’s cost on the lower cost plan. You can then allow the employees who want a better plan to pay the difference. This is called a buy up and is what a good number of our clients choose.
- Consider establishing a High Deductible plan that is qualified for a health savings account. This plan is suited for higher income employees and owners. The business or employees or both contribute funds to a tax deductible savings account and use the funds to pay medical expenses. The premiums are lower because you have a higher deductible than other plans.
- Establish a pop plan. This is an option that the I.R.S. allows a business to have. Under this plan an employee can use before tax dollars to pay for health insurance premiums. The employer saves the matching portion of the F.I.C.A. and MCARE and the employees save the taxes on F.I.C.A., MCARE, FWH, and state. As a service to our clients we provide at no cost all of the documents required to set this plan up.
- Establish a relationship with a reputable ethical broker who has been in the business a long time. A good broker will be on your side and represent your best interest when working with carriers. Given the same medical conditions that exist one carrier may give a lower cost than another one. A good broker will know these facts.
- Make sure you adhere to all of the federal employer liability laws such as C.O.B.R.A. and HIPAA. We provide complete C.O.B.R.A. administration that will bring you into compliance. Not being in compliance will cause you lawsuits by current and former employees plus large fines by the U.S. dept of Labor. Just sending out notices to terminated employees will not bring you into compliance.
Our clients enjoy all of the above benefits by working with our agency. To take advantage of our services and knowledge of the industry contact B. Wayne Gladden LUTCF at 770-932-5927 extension 1 or e-mail me at firstname.lastname@example.org