How to save money on your small group health insurance renewal in 2021
We were recently interviewed by Newsday for a piece on how COVID 19 might affect health insurance rates in 2021. In that interview we detailed some ideas on how to save money by offering what is called a Narrow Network or Skinny Network.
What this process entails is adding on an option to your traditional plan offering that uses a narrower focused network with less options for providers such as hospitals or doctors. These smaller networks negotiate better rates from providers, and in turn can pass along those savings to you in the form of lower premiums.
- Oxford Health Plans offers a Metro network as their Narrow Network.
- Emblem Health offers the Millennium network as their Narrow Network.
- Empire BCBS offers the Connection network as their Narrow Network
Other carriers such as Oscar and Healthfirst only offer one network but they are narrow in focus to begin with and can offer savings over the larger networks of their competitors.
How can narrow networks help me save money on my small group health insurance policy?
Narrow or skinny networks allow for similar benefits to a traditional plan with lower premiums as they have negotiated lower reimbursement rates for providers and have passed those lower rates on to you.
Can I still offer multiple plans such as high and low options?
Yes, with all carriers you can offer up to 3 plans side by side so it is easy to add a narrow network offering to your current large network option(s) to create incentive for employees to choose the narrow network option to help save on premiums.
Is Narrow Network plan the answer for all employees?
Most likely no. The best suggestion is to offer a high and low option for your employees. Contribute the same amount towards the premium for all employees and let them decide if they want to contribute the difference for the High plan, or go with the Low option to save premiums. Either way the outlay for the business is the same no matter what plan and employee chooses, and the employee has the freedom to chose the plan and pay according to their own individual needs.
How do I add on an additional narrow network plan?
It’s easy! At renewal work with your broker to come up with alternative plan options to offer to your employees and allow them to choose between those options. If someone wants to move to the new narrow network option your broker can work with the carrier on the paperwork involved in adding that option on. If you currently do not work with a broker, know they are free to use in NY and do not cost any more in premium so you have nothing to lose by contacting us and we can get us assigned as your broker to assist in your renewal process.
Peak Advisors Inc. has been servicing small businesses in NY for over 30 years. We maintain a 5 Star rating on Google and would be happy to assist you find quality small business health insurance for your small business in NY. So give us a call at (631) 207-1800 or click to schedule a FREE consultation for NY small business health insurance.