How to Save Money on Group Health Insurance:

As a small business owner, it is important to costs in order to stay competitive and keep your profit margins at a healthy level. As health care costs skyrocket, it is even more important to find ways to save on your group health care costs.

Saving Tip #1 - Shop for the best deal. The best way to save money on your group health plan is to thoroughly research your options before you commit to one plan. Your insurance agent should be able to assist you in finding several different plans that fit your needs. If you are working with a company directly, ask to see several different group plans that they currently offer, or go to multiple companies until you find the plan that is suited to your company.

Saving Tip #2 - Check with your employees. You may want to give your employees the best group plan out there, but they may not need all of that extra coverage. Try to find out what your employees need and expect from their group health plan and then select a plan that can fulfill their needs and meet your requirements.

Saving Tip #3 - Use the Internet. When you are shopping for a group plan, log onto the Internet and see which companies are currently offering group health insurance. Instead of being limited to providers in your area, you may be able to find an insurance company with a lower priced group plan somewhere else. Some companies even offer discounts for purchasing a policy online, in many cases, companies have saved over $250 a month on their premiums.

Saving Tip #4 - Look for companies that deal with small businesses. Small businesses do not have the resources at their disposal that large businesses do. Regulations are different and pricing schedules are different as well. Try to find a company that caters to small business owners. They will be more well versed in the needs of small businesses and chances are, you'll be able to save a great deal of money.

Saving Tip #5 - Look for a company that locks in a rate. Many insurance companies raise their premium prices each year. Try to find an insurance company that will offer you a fixed rate for your group health insurance policy. You will need to compare this plan with others that do not lock in a rate to make sure you are getting a good deal.

Saving Tip #6 - Find an HSA eligible group plan. Health savings accounts allow employees and business owners to make tax-free contributions towards the account. The savings that you can see on your taxes are considerable if you use these accounts. Your employees can benefit as well. Not only are contributions non-taxable, but your employees will be able to use the money for their medical and insurance premium needs tax-free as well.

Saving Tip #7 - Spread the premiums around. If you simply cannot afford to pay the entire premium amount for your employees, you may need to ask them to pick up some of the slack. Small businesses typically ask their employees to come up with a portion of monthly premiums. It is a good idea to check with your employees to see just how much they will be able to afford if you decide to take this route. You don't need to alienate your employees by having them pay more for their insurance with you than they would with another company.

Saving Tip #8 - Look into flexible group health plans. A flexible group health plan allows employees to select the level of insurance they need from your group health plan and can offer significant savings for business owners who pick up all or a portion of their employee's monthly premiums. This type of insurance plan is very popular with employees, especially if they have specific health insurance needs.

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