{"id":4169,"date":"2021-12-18T09:00:24","date_gmt":"2021-12-18T09:00:24","guid":{"rendered":"https:\/\/healthdrum.com\/blog\/?p=4169"},"modified":"2022-04-25T15:42:55","modified_gmt":"2022-04-25T15:42:55","slug":"8-ways-for-employers-to-cut-health-insurance-costs","status":"publish","type":"post","link":"https:\/\/healthdrum.com\/blog\/8-ways-for-employers-to-cut-health-insurance-costs\/","title":{"rendered":"8 Ways for Employers to Cut Health Insurance Costs"},"content":{"rendered":"

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The purpose of insurance is to mitigate the risk of an unlikely or costly event. <\/span>In contrast, the health insurance industry has torpedoed the very purpose and benefit of insurance by exploiting the coverage of generally affordable, routine healthcare. A blueprint that has created a money-making monopoly for the insurance industry.\u00a0<\/span><\/p>\n

8 health insurance cost-cutting options for employers<\/strong><\/h2>\n

The health insurance industry bakes in their fat profits along with the commissions and bonuses it gives brokers (and some PEOs) for every plan sold. These financial rewards get even bigger when supplemental plans are purchased. Yet, when 50 percent of the population consumes only 2 percent of healthcare dollars and a typical family plan costs a company about $12,000 to $24,000 per year, it’s clear that most employers are over-insured and overpay. Read more about why insurance coverage of routine healthcare is flawed.<\/a><\/span><\/p>\n

Here are a few options for cutting the fat:<\/span><\/p>\n

\u00a01. Medical Cost-Sharing Plans<\/strong><\/h2>\n

Consider medical cost-sharing or healthcare sharing plans as alternatives to traditionally costly and rule-based health plans. <\/span>Read more about medical cost-sharing plans.<\/span><\/a>\u00a0\u00a0\u00a0<\/span><\/p>\n

2. Self-Funded & Level-Funded Plans<\/strong><\/h2>\n

Consider a self-funded or level-funded plan. Here, an employer assumes the financial risk for providing employee health benefits. Both plans are similar. The level-funded plan is one where an employer pays a set amount of money into its own claims fund based on an estimate of what\u2019s to be paid out. If there are savings, the employer shares in the unused funds as a credit on future contributions. Self-funded plans benefit employers by allowing them to;<\/span><\/p>\n