Reducing Health Insurance Costs when Premiums are Growing

NJ and NY health insurance for nonprofits

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There’s no doubt that health insurance premiums are on the rise. In a recent study, the ADP Research Institute examined the costs of healthcare for large companies from 2010 to 2013. The study’s findings showed that the average employee monthly premium for health plans in 2013 is $832, a 13.9 percent increase from 2010.

Geography was one of the factors associated with rising health premium costs, as premiums vary by state. Currently, the state with the highest group health premium was found to be New Jersey, at a cost of $968 per month. However, age also plays into the cost of health premiums. ADP Research Institute’s study found that the highest monthly premium is for employees in the 40-49 age bracket, at $949 per employee. Since 2010, premium costs increased the most for the under-30 age bracket and the least in the 30-39 age bracket.

With average costs for health premiums coming in at $627 for employers and $205 for employees, it’s important that you find ways to reduce health insurance costs while providing exceptional options for your employees.

The Wall Street Journal recommends that employers offer a high-deductible plan linked with a health savings account. This type of offering makes it easier to control the costs of the plan since the focus is on the employee for coverage amounts. Also, consider a plan that features flexible spending accounts (FSAs), which “allow workers to pay for medical expenses that aren’t covered by health insurance with pretax dollars.”

Another way to potentially reduce health insurance costs is to implement an employee wellness program. A wellness program can encourage healthy lifestyles by providing employees with gym membership discounts, tips for stress management or access to healthy snacks during their workday.

To help you find the best health insurance plan for your employees, it is best to consult a professional insurance broker. Lamb Financial Group can help you find the best plan for your nonprofit or for-profit organization or business so you can save money while offering your employees affordable healthcare. Contact us today at 1-866-481-5262 to speak with a representative and explore the options we have to offer.

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