The success of any business is built upon its employees. As an employer, it’s in your best interest to take care of your staff’s health and wellbeing. When your employees are unwell, your business suffers. Within small enterprises, the absence of one or two employees could significantly disrupt the business’s daily operations and cash flow.
To take care of their staff’s healthcare needs, companies buy health insurance coverage for each employee. Traditionally, businesses would buy policies funded by big insurance companies. Now, however, the soaring cost of healthcare is also driving up insurance rates. for instance, has one of the highest annual health insurance premiums nationally.
In order to balance their staff’s healthcare needs and keeping their company afloat, employers need to be smarter when it comes to healthcare spending. To this end, a lot of businesses nowadays are switching to self-funded health insurance solutions. In this article, we talk about the benefits of funding your company’s own health insurance plan.
Self-Funding Allows Cost Savings on Insurance Premiums
While big corporations can afford to take out policies from big health insurance companies, the same is not true for most small to medium businesses.
It’s estimated that small enterprises can pay 8-18% more on similar health insurance policies compared to corporations because they don’t have the same buying power as these big companies. for example, employees’ health insurance premiums can cost upwards of $8000.
As an alternative, a lot of businesses are switching to self-funded health insurance. In contrast to more traditional fully funded health insurance policies, self-funded plans are not a one-size-fits-all deal. This allows businesses to cut down on the coverage that their employees don’t need, preventing their healthcare costs from bloating. Companies with self-funded health schemes only pay for the health benefits that their employees use.
Improving Your Business’s Cash Flow Through Savings
Small businesses typically do not have a lot of cash flow available.
Self-Funded Health Plans Can Be Tailored Based On Need
Not only does the customizability of self-funded health plans create savings, but they can also cater more to the individual needs of staff. Each of your employees will have different health needs. For example, some employees may need more coverage for medications, while others would benefit from increased coverage for check-ups with specialists.
Implementing a self-funded health scheme for your organization allows you to tend to these individual needs, ensuring that your employees are able to utilize their benefits. This will go a long way to making your staff happy because adequate healthcare is important to people. To illustrate, some of the top-rated cities for employee happiness, are also the ones that offer good healthcare.
Ensuring that your employees are satisfied with their health coverage is one of the best ways you can secure morale. In doing so, you can make them feel secure and taken care of. This could promote enhanced performance and increase employee loyalty to your business.
If you’re interested in self-funding your business’s health insurance plan, Get in touch today with National Insurance Partners we have a great team ready to assist you.