By 2013, employers are expecting another increase in health care costs. As predicted, it will be another seven percent increase just like this year. Because of the rising cost of health care, this pushes employers to seek other health care coverage options to lower premiums and their financial exposure.
For small business owners, this constant increase in health insurance has placed it out of reach for many. It is a struggle to continue providing health care benefits to their valued employees. Many are forced to increase the premiums paid by employees just to compensate for the increase in expenses. Some are even pushed to stop offering health care benefits at all. If they don’t find a solution, employees are less likely to see health insurance offered as a benefit. In addition, if you have 50 or more employees, you will be required by the law to provide health care benefits to all of your employees or pay a per person penalty.
To lower their health care costs, employers have been trading traditional co-pay plans for ones with higher deductibles that can be paired with a Health Savings Account. High-deductible health plans offer premiums lower than traditional health insurance. Employers are also encouraging their employees to open a tax-advantaged Health Savings Account (HSA). Health Savings Accounts enable employers to cut down on the income tax that they pay every year by placing contributions in their employee’s HSA. This is really a win-win situation for both employers and employees.
Aside from that, employers are moving toward wellness and health awareness methods that encourage better health. The healthier their employees, the lower the health care costs. This also helps workers become more proactive when it comes to their health. To make comparing health insurance options easier, you can use our rapid quote engine to see how you can cut back on your health care expenses. Comparing rates is one of the best ways to save on premiums.