6 Hacks For Small Businesses To Save Money On Health Insurance

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6 Hacks For Small Businesses To Save Money On Health Insurance

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Nearly 50% of the US population receives employer-sponsored health insurance while 13-16% of the UK’s SME workforce is concerned with their mental and physical health - even with available public health coverage!

All this makes private health coverage a sought-after benefit for employees and a must-have competitive advantage for employers! 

But, offering group health insurance can represent a significant expense that not all small firms are able or willing to afford. Luckily, with the money-saving tips below, you don’t have to compromise between safeguarding your employees’ health and sticking to your budget!

Identify Your Insurance Needs

The first step to finding a health insurance cover that first your budget is to understand your insurance needs. These will vary depending on your business’s size, the number of employees, and the nature of your operations. 

What’s more, depending on where your business operates and is based, you might also need to invest in worker’s compensation and general liability coverage. You might also opt to provide your employees with health insurance benefits even if your business operates online. 

Compare Multiple Insurance Plans

If you have identified your insurance needs and crafted a collection of suitable plans, it is now time to compare the different policies and review the small business’ voluntary Medical Insurance Guideline.

Switching between providers, getting quotes, and pinpointing the right insurance tier for your need can help you find a group health insurance policy that fits the needs of your workforce and your budget. 

Pro tip - choosing a higher coverage tier is not always a better choice! Make sure you choose a plan that allows your employee to receive the medical care they need - but be mindful to not over-insure them!

Know if You Need To Offer Health Insurance

Not all businesses are required to offer health insurance - and it might be more convenient for you not to do so! For example, in the US, only small businesses with more than 50 full-time employees are required to have a group health insurance policy. 

In the UK, thanks to the availability of the National Healthcare Service (NHS) there are no legal requirements for SMEs to offer private insurance coverage at all. And yet, in both cases, business owners might decide to do so - and for more than a reason! 

For example, in the UK, nearly 32% of employees actively look for employers who offer private health insurance. As the Great Resignation rages on, offering private insurance to your prospective employees might offer you a unique competitive edge and increase your chances of attracting and retaining top talents. 

Review and Update Your Coverage Every Year

No business will remain the same throughout time - and yours isn’t different. So, every year, you should consider reviewing your health insurance policy to make sure that it still protects your employees while limiting related expenses.

Working with a specialised insurance broker - or using an online platform to create an ad hoc policy - can help you understand what coverage you need now that you might not have needed in the past, and what expenses are superfluous. 

What’s more, a broker can help you find a strategy to reduce your insurance expenses, such as opting for higher deductibles to reduce your monthly premiums.

Promote Your Employee’s Health and Wellbeing

Keeping your employees healthy and safe isn’t just about providing financial coverage in the case of an injury or illness - it is also about minimising health risks and focusing on prevention. 

Introducing an employee wellness program to improve well-being in the workplace can reduce stress levels and promote a healthier lifestyle among your teams, thus reducing the risk of health conditions like mental health disorders, cardiovascular issues, obesity, and respiratory problems. 

Even better, many insurance providers recognise the lower risk involved with a healthier workforce and might offer policyholders benefits like lower monthly premiums and cashback!

Understand Your Tax Benefits

Making room in your budget to offer your employees private health insurance is a small price to pay to build a healthy, productive, and reliable workforce - which, ultimately, is what keeps your business profitable!

But buying health insurance can also offer you tax benefits and ensure that an injured or ill member of staff can return to work quickly and in even better health. 

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6 Hacks For Small Businesses To Save Money On Health Insurance

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