Business health insurance is a good idea. It gives your employees peace of mind and helps attract top talent to your company. However, it’s important to save money when buying group health insurance. Here are some guidelines to follow:
- The first step for companies searching for coverage is to get a group health insurance quote from multiple providers. That can be time consuming, but a licensed group health insurance agent can streamline the process.
- Then, consider the size of your workforce when comparing group health insurance rates. Large businesses tend to receive a volume discount, since the health insurer can spread risk among a larger pool of people. Small businesses will face higher quotes.
- Also think about the composition of your workforce. Having a large percentage of older employees may lead to higher group health insurance rates, because group health insurance providers consider them more likely to file expensive claims. The same is true of a heavily female workforce. These effects are more noticeable among smaller companies.
- Select a type of group health insurance coverage, balancing the profitability and finances of your business with the needs of your employees. High-deductible health insurance with a health savings account (HSA) may be the least expensive insurance you can offer, but your workforce may be more suited to a more comprehensive (but still affordable) HMO or PPO.
