No one needs to tell you that small business health insurance in Arizona is expensive. You know that because you seem to pay more in premiums each year while your employees receive less in benefits.
At the same time, you understand the importance of health insurance and know that you need to offer health insurance employee benefits to attract top talent and to help your existing Arizona employees stay healthy.
While we understand the high cost of providing coverage can be frustrating, the good news is you can take steps to lower your financial output.
We outline a few ideas for how you can save on small business health insurance in Arizona below.
Save Money on Small Business Health Insurance by Joining a Purchasing Cooperative
Is your Arizona small business part of a network with others in your industry? If so, consider asking your connections if they would be interested in becoming part of a purchasing cooperative to help all of you save money on purchasing health insurance for your employees.
We recommend that you research several health insurance purchasing cooperatives before selecting one since each has its own criteria for membership.
You should also know that local underwriting laws play an essential role. The government rules will drive whether you can obtain the best rates for small business health insurance by purchasing it on your own through the open marketplace or by joining a health insurance purchasing cooperative.
Create a Disease Management Program
Chronic health conditions, such as asthma or diabetes, can be expensive to manage on a day-to-day basis. Unfortunately, the cost can become even more problematic when the health condition requires long employee hospital stays. Costs rise even more when significant complications occur from chronic health conditions.
Disease management programs that offer better screening and preventive care can help to keep the effects of the chronic health condition in check while minimizing costs for both employer and employee.
Some companies opt to staff these programs with registered nurses who work with affected employees on a one-on-one basis to treat and manage their chronic condition. You can find disease management programs through some health insurance providers or a third-party provider.
Offer a Nurse Hotline Option
Unnecessary visits to emergency rooms and urgent care centers are expensive for both employers and employees. However, employees often don’t know what else to do when it’s after hours, their regular doctor’s office is closed, and they have sudden symptoms of an illness or injury.
You can make it more convenient for your employees while saving money on your small business health insurance costs by offering a nurse hotline option.
A nurse hotline gives employees the ability to call to speak to a registered nurse before automatically heading to the emergency room or urgent care center. The nurse can assess the situation by phone and guide the employee on what to do.
Benefits administrators or private health insurance companies are both excellent places to check for this benefit.
More info: Visit the Ambetter Arizona Why Level Funded Health Plans are Increasingly Popular Among Small Businesses
Consider Level Funding
If you know that most of your employees are healthy, you might wish to consider an option known as level funding.
Level funding is a form of group health insurance with similar administration and benefits as a fully insured product. The significant difference is that level funding provides more opportunities for you to save a little more money on small business health insurance.
With level funding, you pay a set premium towards your employer account. The administrator of the account uses the money to pay healthcare claims made by your employees.
If money remains in the account at the end of the calendar year, the plan administrator returns it to your business. The administrator also pays the overage if the employee claims exceed the amount in your account.
However, posting an overage two or more years in a row could hurt your company’s chances to qualify for level funding in the future.
Do Your Research Before Signing Up for 2020 Benefits
The above are just four tips that can help you save money on small business health insurance. As a long-time Arizona health insurance broker, Anderson Insurance Services makes it easier to find and compare several health insurance plans at the same time.
Contact us to schedule a free consultation with an Arizona health insurance broker to discuss ways to lower your small business health insurance premiums.