How to Lower Health Insurance Premiums

As a small business health insurance broker in NY, we get a lot of calls and emails from people looking for ways to lower their health insurance premiums. Many ask if they can join an association or get into a group of other small businesses to combine their number to negotiate lower insurance rates. Others simply want ways to keep their current insurance carrier but lower what they pay in premiums each month. Whether you are a small business or individual, here are some ways how to lower health insurance premiums.

Can I lower health insurance premiums by joining an association or combining with other small businesses?

In general, small business health insurance plans are already rated based on multiple businesses being combined for insurance purposes. When a carrier offers say plan XYZ, many businesses will offer that plan to their employees. This has the same effect as having multiple employers join together to negotiate lower rates. In essence, the small business market is already made up of many businesses…tens of thousands of employees, all being combined as a ‘purchasing block’ used to come up with a rate for the overall enrollment in that plan. An association or a combination of multiple businesses has no better bargaining power than the tens of thousands of individual employees from multiple separate businesses. Both end up providing the same coverage to tens of thousands of people…and the rates are based on the same tens of thousands of enrolled people…regardless of if they are from an association, multiple businesses bargaining together, or from multiple separate businesses.

If I can’t negotiate a better rate with other people or businesses, how can I lower my health insurance premiums?

Whether you are a small business or have insurance in the individual marketplace, here are a few options to consider to lower your rates:

• Research other insurance company networks to see if your doctors participate with their network and then get quotes based on that network. Rates are often driven by network access, so rates for a large network plan tend to have higher premiums than that of a smaller sized network. As long as your doctors participate, you can easily save money going this route. Most licensed health insurance brokers can help you research options in your area.
• Look to increase your copays or deductible. Rates depend on how much ‘cost sharing’ you are willing to take on yourself. This means, if you increase the amount of your deductible or copays (take on more of the cost yourself) your premiums will be lower. The problem here is finding a good balance between saving money on premiums but keeping the potential out of pocket affordable. A good broker can help you compare the risk and rewards.
• Look at carriers that have smaller networks and maybe be willing to consider other providers than you might use now. A smaller network does not necessarily mean worse options. Most networks have robust options for primary and specialist providers to handle all health conditions. Unless you have a specific chronic condition or use services often, it might pay for you to consider a plan with thousands of providers with a network close to your home but lacking national reach. These plans work for most people and provide good access at home with coverage for emergencies anywhere in the US. Savings could be $100-$200 per month for an individual and upwards of $500 for a family by moving from a large national network plan to a local narrow network plan with benefits being fairly similar.

How can I find out how to save money on health insurance?

Call a licensed health insurance broker to assist you in finding and comparing plans in your area. In New York, Health Insurance Brokers do not cost anything to use, and premiums are the same if you use a broker or call the carrier directly.  So you have nothing to lose by using a broker and accessing their knowledge and assistance. Brokers can assist you in finding and comparing plans and will continue to do that each and every year, even if you have to move from one carrier to the next during that time. They work for you and not the insurance company, so they should be a trusted resource in this area.

Should you wish to get quotes or simply discuss plan options, give us a call at 631-207-1800 or email us at info@peakinsuranceadvisors.com. We would be happy to answer your questions.