Small business owners in Arizona may face a difficult challenge when dealing with the health of their employees: giving health coverage and attempting to lower employee health insurance costs.
There are many advantages to Arizona businesses that offer group health insurance coverage to employees, including drawing in new staff, increasing current employee retention, job satisfaction and productivity, not to mention the tax benefits they receive as the employer.
But even the most generous of employers will find that providing health insurance to employees comes with a price increase in 2023. Recent studies show that the cost for employers providing healthcare for their workers will increase up to 6.5% in 2023, which adds up to around $13,800 per employee. This may be a hefty expense for small businesses in Arizona with only a few staff members.
But don't be disheartened - reducing the amount spent on employee health benefits while still providing them with coverage is possible. Arizona small business owners can take four measures to reduce the expense of employee health benefits:
Promote Wellness Among Your Employees
Taking proactive measures to ensure the health of your employees is a crucial part of successful business management.
It can be tricky to understand health insurance, but one thing is certain: those with healthy habits do not need as robust a health benefits package as those with unhealthy habits.
From large corporations to smaller family-run businesses, prioritizing employee wellness with programs that incentivize employee self-care can lower employee health insurance costs overall. For instance, routine checkups, dietary and lifestyle modifications, and other preventative measures can positively affect your employee's overall well-being.
Of course, the incentives you offer to your employees will vary according to their needs and your industry. Common rewards include gift cards, bonuses, company-sponsored events, or, for small business owners whose budget does not allow for financial incentives, providing simple recognition for those who take steps to focus on their health.
Increase Employee Contributions or Reduce Benefit Levels
This second option to lower employee health insurance costs is usually not popular with many employees (or their employers) - no one relishes telling hard-working employees that they need to contribute more toward the cost of their health insurance coverage.
In the same way, nobody likes to announce that the coverage for the upcoming policy year will provide fewer advantages, service providers, or higher deductibles and copayments.
Although this option is far from ideal, some Arizona business owners may find this a viable option to lower employee health insurance costs in 2023.
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Explore the Advantages of Health Savings Accounts (HSAs)
An HSA is an employee-owned bank account that is free from taxation. Employees can use this account to pay for healthcare-related expenses.
Both your company and your workers can benefit from HSA health insurance plans. Employees receive certain tax advantages for contributions, and contributions made by the employer to the employee's HSA are also tax deductible, resulting in lower employee health insurance costs.
Employers and those they employ can only create and use a Health Savings Account (HSA) when paired with an insurance plan compatible with HSA rules. Typically, these plans have lower monthly payments but a steeper yearly deductible.
Understand the Options Available to Lower Employee Health Insurance Costs
What is the most effective way to lower employee health insurance costs? Consider all of the options available before making a final decision.
But that may seem easier said than done. However, small business owners (who are experts in their own field) may find the world of group health insurance challenging. From industry jargon to sifting through the minute details of potential policies, selecting a plan that meets your budget while providing your employees with the best benefits may seem impossible
This is where the services of a local guide are invaluable. Arizona small business owners working with local and independent group health insurance brokers have an advantage in lowering employee health insurance costs.
These brokers can navigate the complexities of health insurance and communicate them in an easy-to-understand manner. With their experience, knowledge, training, and resources, they can provide plans with the most options.
Imagine making group health insurance easy, receiving the best plan for your company and employees without wasting valuable time and resources. This is what a health insurance broker can do for your small business.
Do You Need to Lower Employee Health Insurance Costs in Arizona? You Need Anderson Insurance Services.
At Anderson Insurance Services, we have a wealth of experience as an Arizona small business health insurance broker. Our goal is to ensure that every business in Arizona can provide affordable health insurance to keep their employees and their profit margins as healthy as possible.
Contact Anderson Insurance Services today to arrange your free consultation for your small business health insurance needs.