LOS ANGELES, Jan. 21 /PRNewswire/ -- Employer health insurance premiums
increased by 7.7 percent, two times the rate of inflation. The annual
premium for an employer health plan covering a family of four averaged
nearly $11,500. The annual premium for single coverage averaged over
$4,200. As we enter 2008, I encourage every single business owner to
increase its bottom line by lowering Health Insurance Premiums.
-- Health insurance expenses are the fastest growing cost component for
employers. Unless something changes dramatically, health insurance
costs will overtake profits.
In 2005 General Motors spent $5.3 billion to cover the health costs of 1.1 million employees, retirees and dependents. On a per-car basis, General Motors spends more money on health insurance than on steel, according to Billionaire Wilbur L. Ross Jr.
Nationwide, about 63 percent of Americans have health policies offered by their employers. In California, only 55.7 percent of workers were covered through their jobs last year, making it the state with the fifth-lowest level of employer-sponsored coverage, according to the study by the Economic Policy Institute in Washington.
Hispanic business owners should realize there are affordable new ways
to get health insurance. The following health insurance solutions are
available for Hispanic business owners to get better and cheaper health
insurance coverage, and save thousands of dollars a year on healthcare
-- Shop price and coverage
-- Pick plans with high deductibles
-- Live a healthy lifestyle and encourage employees to do the same
-- Use the new Health Savings Accounts (HSAs) to get a double tax break
-- Work with a knowledgeable and professional health insurance consultant
Ways to lower health insurance premiums:
I. Live a Healthy Lifestyle and encourage your Employees to do the same
Living a healthy life has many benefits. Your healthy lifestyle can easily help you in bringing down the health insurance premium. Exercise regularly, eat a healthy diet, avoid smoking and heavy drinking and your visits to the doctor will surely be minimized. The healthier you are, the lesser you are represented as a risk for the insurance carrier. Did you know that your policy is subject to a "Usage Factor" which is typically known as a "R.A.F". This is the price for your healthcare, unhealthy lifestyles will add to your bottom line.
II. Shop Price & Policy
Most business owners do not know how their plans work. Hire a health consultant to analyze and strategize your plan. Not all policies are created equally today. Many plans are subject to "Limited Fee Schedule" which limit the amount of pay outs based on procedure types. Employers should lay out long term plans to lower health insurance premiums. Offering Health Reimbursement Accounts or Health Savings Accounts and funding these accounts will offer long term stability. Plans like Health Savings Accounts or Health Reimbursement Accounts will save business owners thousands of dollars in the long run. Buying a health insurance plan that pays for all employee medical expenses is no longer the norm. The modern day business owner should educate employees on actual medical costs. In a recent report, John Mackey, CEO of Whole Foods, successfully implemented a HSA plan which saved Whole Foods $7 Million annually.
III. Pick Plans with higher deductibles
Insurance plans with higher deductibles tend to have lower premiums. Typically, a "deductible" is the set amount you are expected to pay toward hospital, doctor and other medical bills. Buying health insurance is a pure mathematical solution that takes into account actual policy exclusions and policy limits.
IV. Work with a Professional Health Insurance Consultant
Health insurance consultants have thousands of plans to pick from. A well-informed and knowledgeable professional broker will work with your company to keep costs stable for years to come.
The number of employers offering health insurance has fallen nationally in recent years due to rising premiums and the diminishing bargaining power of the average worker. Hispanic business owners need to understand that logical solutions are available to lower premiums and still offer employees' comprehensive healthcare. A smart and simple way to lower costs is to encourage employees to shop for medical procedures. Do you know how much that X-Ray is going to cost? I am often amazed that most people look for bargains for everything from gas to clothing, but when it comes to medical procedures, most of us just pay without comparison shopping. This type of behavior will ensure higher premiums for your company and our nation. A quick solution to lowering your overall health insurance premium is to analyze usage versus premiums.
In 1991 Rudy Rivas started one of the first Insurance agencies in America to Market specifically to Hispanic Business Owners. In 2005 he was named by Hispanic Business Magazine one of the Fastest growing Hispanic Owned Companies in America. Mr. Rivas has been a Multi-Awarded Insurance Broker within the Insurance Industry and within the Community. http://www.HispanicInsure.com
|SOURCE Hispanic Insure|
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