Most owners of small to medium-sized businesses feel that managing and paying for their employees’ health insurance is one of the most challenging aspects of running their company. You have to balance choosing a great plan with keeping your firm profitable. Unfortunately, this is extremely hard, and many CEOs are paying too much for traditional health insurance.
If you’re wondering how to drastically cut your costs, you should reach out to Health Compass Consulting. We help businesses that have between 25 and 500 employees to slash their healthcare costs and gain access to better plans at the same time. But how is this possible? Read on to find out more about our health insurance options and other services.
How to Save Money on Traditional Health Insurance
In 2000, employers only paid around 10% more than Medicare, but nowadays, they might have to spend two to three times as much on their employees’ plans. Clearly, the traditional model of health insurance is no longer working for many businesses, especially those that have under 500 employees. While there are several reasons why so many companies pay too much, the results are always the same: lower profits and inferior healthcare for everyone.
If you’re worried about paying your employees’ benefits, you should reach out to consultants who can help you optimize your situation. Together, we can explore various options, which might include cutting your fees, joining a risk pool, and combining several policies.
Why Do So Many Companies Overpay?
Countless studies have demonstrated that both individuals and companies pay too much for health insurance every year, often by thousands of dollars. But why is this such a common issue? Sometimes, it is a simple error on the part of the insurance company. While this can easily be corrected, most CEOs don’t have the knowledge or time to find and rectify the mistake.
Additionally, countless employers don’t only pay for health insurance, but they also have to bear the cost of numerous administrative fees, commissions, and taxes. While some of those are legitimate, others could be eliminated by smart negotiating. If your fees represent a large part of the cost of healthcare, it’s highly likely that you are paying too much.
Exploring All Options with Health Compass Consulting
Providing great benefits is crucial because it helps you attract highly talented employees. But just because you want to offer a high-quality health plan doesn’t mean you have to get ripped off. At Health Compass Consulting, we can help you explore various healthcare options and find the one that suits you best. In many cases, employers can stay with the same insurance company but cut out middlemen and excessive fees.
However, if your current plan is suboptimal, you might have to switch to a cheaper or more comprehensive insurance company. During your discovery call with us, we can analyze your current situation and outline some optimization strategies such as cutting out fees, changing to a different plan, and joining a risk pool. If you’re currently paying multiple providers for life, disability, vision, and dental insurance, it might make sense to switch to a single plan.
Why Is Pooling the Solution?
Did you know that small and medium-sized firms pay approximately 8-18% more for health insurance than larger companies? The reason is that smaller businesses have few employees, so they don’t have the same buying power as their more sizeable counterparts. A great way to eliminate this disadvantage is to pool your resources with other firms. Risk pooling is a fundamental concept in the world of insurance.
It involves combining many individual policies, which allows insurers to offset the higher cost of the people who have pre-existing conditions by the cost of the healthier individuals. Because a larger pool is much more predictable than a small one, companies can save a significant amount of money by teaming up with others and purchasing a combined plan. The easiest way to gain access to a risk plan is to join Valor from Health Compass.
The Benefits of Offering a Cheaper, Better Health Plan
It goes without saying that moving away from traditional health insurance and purchasing a cheaper plan can save you money. But is this really a priority if your business is already doing well, or should you spend your time expanding your company and marketing to new demographics instead?
The answer is that you can do both when you team up with a consultancy. While you focus on providing your customers with maximum value, our team at Health Compass Consulting will set up, monitor, and adjust your health insurance plan continually.
You Gain a Competitive Advantage
In many industries, profit margins are slim, and there is a lot of competition. Therefore, every small change that can increase your revenue or decrease your costs makes a difference. By choosing the optimal health plan, you can lower your costs by up to $5,000 per employee per year. No matter what business you’re in, this is a significant amount.
Another key advantage of working with consultants to improve your plan is that you can free up a lot of time and energy. If you try to sort out insurance on your own or ask your employees to do it, you might have to spend several hours or even days on it. What’s more, you constantly have to monitor your plan to make sure it still suits your business’s needs. By delegating this task, you can spend more time on what you’re good at: serving your customers.
You Can Attract Better Employees
Another way to beat out the competition is to employ the best and most efficient people for the job. Unfortunately, there is a lot of competition since great employees are rare. One of the best ways of making sure you’re the top choice for quality workers is to offer an excellent environment. Your benefits should be the best in the local area. Together, you and our consultants can come up with a plan that optimizes the value of your healthcare plan and benefits.
Why Choose a Health Compass Consulting Plan?
There are several companies that can help you select and implement a good health insurance plan for your employees. So, why should you choose Health Compass Consulting? We are unique in several ways. Thanks to our longstanding experience with businesses in various industries, we can provide you with advice and implement a plan that works best for you.
What’s more, you will never pay too much for our services because we work with a fee-based model. If you require additional help such as human capital management and 401(k) management, we can also assist you with these aspects of running your business.
Great Savings for Every Company
Every company we work with saves a lot of money on health insurance. Before we take you on as a client, we ask you to book a free discovery call, during which we can evaluate your current health insurance plan and help you figure out what changes you need to make. We will only agree to work with you if we believe we can save you at least $1,000 per employee per year.
A Hands-Off Approach
We believe that you should be able to run your business without worrying about health insurance and ancillary benefits. Therefore, we actively manage your benefits and provide you with a completely hands-off approach. This includes the initial design process as well as the implementation and a regular review of your current policies.
A Fee-Based Model
Health plan consultants get paid in a variety of ways. Here at Health Compass Consulting, we always use a fee-based model, so there’s no chance that you will overpay. Additionally, we guarantee that your savings will be at least three times greater than the fees you pay us.
A Wide Variety of Services
Aside from managing your health insurance and ancillary benefits, we also provide other services. In particular, we want to help you acquire, train, and retain the best employees in your field. Therefore, we can offer you help during the hiring process, development planning for your employees, HR consulting, and team-building training.
What’s more, we will have a look at your current 401(k) plan and make sure it is optimized. Many small businesses are paying too much in fund management fees, and their employees’ portfolios don’t perform well due to bad investment strategies. Our consultants can fix this problem and make sure your employees get the maximum benefit from their retirement plan.
Traditional health insurance is expensive and ineffective. In addition to overpaying every month, you might also have to pay high deductibles and fees. Fortunately, almost every small to medium-sized business can now slash its costs by working with expert consultants. We can help you cut out the expensive fees and pool your resources with other companies to get much more affordable rates and better plans.
Optimizing your health insurance can save you thousands of dollars every month. This and the fact that your health plans will be better allows you to gain a competitive advantage and attract high-quality employees. Get in touch with us now at Health Compass Consulting to book your discovery call with our experts. We will be happy to help you save up to $5,000 per employee and improve your talent acquisition strategy.