Tips to save money and time when shopping for health insurance
Angie's List conducted a nationwide survey of more than 400 highly rated service providers to get their thoughts on shopping for health insurance.
Currently, 65 percent of respondents offer health insurance benefits to their employees, and each has used a variety of techniques to keep costs down. Fifty six percent switched to a higher deductible; 43 percent changed insurance companies and 41 percent altered the type of plan they offer.
Tips to help small business owners save on insurance costs.
- Shop around. The best deal today might not be the best deal six months from now. Schedule a review of your current policy and your options at least once a year and anytime your company's situation changes. Get quotes from three different providers and always check out the background of any company before you give them your business.
- Save time. Meet with an independent broker who can explain the pros and cons of a variety of insurance plans instead of meeting with individual sales representatives for each company.
- Talk to your employees. To reduce the cost of benefits, ask them what features are the most important. You might find that your employees are willing to go with a High Deductible Health Plan (HDHP) over a low deductible plan and will drop their dental insurance to help save money.
- Encourage a healthy lifestyle. Employees who are offered wellness programs, such as disease management, weight loss, fitness, smoking cessation, etc. are going to be healthier for it. For every dollar you invest in such programs, you should see a savings in your insurance costs to more than make up for it. Even if you can't afford to bring in counselors or set up a fitness center on-site, consider allowing employees to leave 30 minutes early or take a longer lunch break in exchange for working out.
- Part of the plan. When it comes to policies, there are a lot of choices and a lot of fine print. Be sure to ask about high deductible health plans (HDHP); health savings accounts (HSA) and health reimbursement arrangements (HRA). Also inquire about rate guarantees and rate increase caps for your state.
*442 service providers took our poll. Responses are representative of service providers rated on Angie's List and not the general public.