The vast majority of Americans are covered with insurance through their employer. And if you’re an employer, the reality is, this demand requires you to pay out more upfront.
But the question for you, as an employer, is how to save on group health insurance without losing key talent to your competition.
As a small business owner in Texas, that task is even trickier.
But it can be done. You just need a little guidance and a certified employee benefit specialist in your corner.
Here’s what you need to know to reduce your savings and improve your competitiveness.
How to Save on Group Health Insurance without Sacrificing Value
Cutting benefits might seem like the only way to reduce your group health insurance costs, but it can backfire. Employees value strong benefits packages—especially in competitive markets.
Instead of reducing care options, consider how you structure your plan.
One key area to evaluate? Your deductible structure.
If you’re not sure whether an embedded or an aggregate deductible is right for your team, here’s a guide to choosing the deductible structure that fits your budget.
Employee demographics, implementing pre-tax savings accounts like HSAs or FSAs, and working with a licensed broker who understands how to customize coverage without overpaying, are excellent ways to reduce your costs.
Save with a Section 125 Cafeteria Plan for Small Businesses
A Section 125 Cafeteria Plan lets your employees pay for services with pre-tax dollars.
Instead of paying for health insurance premiums and paying taxes on their earned income, they reduce their taxable income and save on insurance.
Plus, for you, the employer, you pay less on payroll taxes. It’s a win-win.
Offering a Section 125 Cafeteria Plan can save you tens of thousands of dollars per year, depending on the size of your team. Better still, you can also offer health, dental, and vision plans for a reduced price. These added beneficios make a big difference in your company’s competitiveness.
Want to learn more? Check out how Section 125 plans can lower your costs and boost employee morale in this pot.
Use a Premium Only Plan to Cut Group Health Insurance Costs
A Premium Only Plan (POP) is a simplified cafeteria plan that applies only to premium payments. Employees can pay their share of health insurance premiums pre-tax, which results in lower taxable income and reduced FICA and FUTA costs for you.
For small businesses that don’t need full benefit customization, this is an easy, compliant way to start saving.
If you’re not ready for full flex benefits, this is an excellent alternative option.
What Is a Simple Cafeteria Plan and Who Should Use One?
Employers who have fewer than 100 employees can use a Simple Cafeteria Plan.
This plan comes with safe harbor compliance rules that make it easier to administer and protect you from certain nondiscrimination requirements.
For newer or growing businesses, a simple cafeteria plan offers flexibility and protection while unlocking tax savings.
Why a Certified Employee Benefit Specialist Saves You More
The reality is, if you want to learn how to save money on group health insurance in Texas, the answer is to work with a Certified Employee Benefit Specialist.
Without professional help, you could miss out on tax advantage strategies and customized plan structures built to save you money.
The reality is, if you want to learn how to save money on group health insurance in Texas, the answer is to work with a Certified Employee Benefit Specialist.
Without professional help, you could miss out on tax advantage strategies and customized plan structures built to save you money.
El PCI team knows how to optimize group plans for cost and compliance, especially under Texas regulations.
Many of our clients have reduced costs while increasing employee satisfaction just by structuring benefits the right way.
FAQs About Saving on Group Health Insurance Plans
What are the most common group health insurance plans?
PPOs, HMOs, POS, EPO, HDHPs, and HSA-qualified plans are among the most common for group health.
Is a POP plan enough for most businesses?
For businesses not offering multiple benefits beyond insurance, yes. It’s a simple way to lower tax liability.
How much do businesses save with a Cafeteria Plan?
Depending on participation, employers often save up to 7% of every dollar employees contribute pre-tax.
Can I offer a cafeteria plan and an HSA?
Yes, with the right plan design. PCI can help you structure both.
Build a Customized Group Health Insurance Plan That Saves Money
Ready to save on your group health insurance in Houston?
Then it’s time to speak with us.
As Certified Employee Benefit Specialists, we can customize your group health insurance plan with cost savings in mind.
You don’t have to lose coverage to reduce your costs. You can keep employees satisfied and save money.
Our tailored group health insurance solutions support Texas businesses from consultation to compliance.
We warmly invite you to schedule a consultation with our team to find out how you can save money and stay competitive.
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