How to reduce the cost of corporate health insurance

If you're a business owner looking at the rising cost of corporate health insurance and sighing at how it will  and sighing at how it will affect your budget, you're not alone. As of April 1, 2016, health insurance premiums will rise as each insurance provider ups their costs.

Many believe it will be around the 6 per cent mark, in keeping with recent annual premium rises. It means if you pay for the entire health insurance needs of 17 employees, the rate of increase is like adding a new person to your policy. The more workers covered, the bigger the rise will be to net premium cost.

All this means you may find your business health plan too valuable to lose, though becoming too pricey to budget for. All is not lost. If you're desperate to reduce your health insurance costs before the April 1 deadline, here are some methods.

1) Compare your health insurance providers

When it comes to finding a corporate health plan, there are 35 insurers to choose from, all offering different rates for similar products and a range of extras options. How can you be sure you're paying the best rate for the same level of coverage? Without spending the time to scour the market for the best price, you can't - unless you get some help.

That's one of the things we do here at HICA. When looking to reduce your premiums, comparing corporate health insurance should be one of your first ports of call, as it can make a huge difference.

2) Look into an excess

Much like consumers, having an excess can be a smart move when ongoing payments become too high. If you're comfortable with the idea of paying a set amount for any claims that get made on your insurance, you can really cut down that monthly payment amount.

As Choice explains, "with many funds and policies, the premium discount is so large that even if you needed go to hospital once every three years you'd still come out on top” The same could be said for your company’s health insurance plan.

3) Pay in advance

If you pay your annual premiums in advance, your insurer can reward you with a discount of around 4 per cent, Choice found. What's more, if you pay your annual premium before March 31, you can avoid the health insurance increase for another 12 months by paying the current price and not the increased one.

It's important to remember that your options depend on your business, your policy, your budget and a range of other factors. To really delve into the best ways to reduce your corporate health insurance costs, get in touch with HICA on 1300 44 22 01 for professional and impartial advice.

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