CA Employers are offering Group Health Insurance and Benefits to their employees at its highest level in 10 years.  Employers are offering Employee Benefits more than ever, even though the prices are rising.  There is major competition for talent and employers want to stay relevant and compete with other similar companies. Smaller companies are competing with large monsters of the industry like Google, Facebook, etc.  Being a small business and offering health insurance doesn’t have to break the bank.

Bay Area companies are getting strategic with their Group Benefits offering.

Insurance Brokers like us that focus on employee benefits are more valuable than ever nowadays.  We focus on benefits and try to come up with creative ways to lower costs to both employee and employer.  One strategy we use is having the employer fund the deductible in different ways.  There are a couple different ways we go about doing this.  Shoot us an email at Brauer Insurance and we’ll talk strategies.

Employee Benefits are the Second highest cost for employers.

Wages are the number one cost for employers and Employee Benefits are a close second.  Employers have to find ways to get creative in order to stay in business.   When we come across a company that has an expensive Group Health Plan in place, we try to find out why.  Most times the decision to have a Gold or Platinum plan is well intended, but in reality it can be a waste of money.  Even if a Health Insurance agent could cut your costs by even 10 or 15%, that’s definitely a conversation worth having.

Rating for smaller companies is different than larger employers.

The pricing on Group Health Insurance plans are set by the State of CA when you have under 100 employees. These plans are age rated.  That means that an employee that is 20 years old is half the price of someone that is 50.  That’s just how it’s set up.  The Trump Administration is trying to find ways to bend the cost curve on pricing.  But even with ideas of more competition and trying to allow states to purchase Group Health Insurance, it’s going to be tough.  These changes could have a positive effect on pricing, but until we reign in the COST of healthcare, the insurance will continue to be expensive.

 

Steve Brauer-Principal,  Brauer Insurance Services LLC,  www.brauerinsurance.com,  (877) 421-4325