As a business owner, you work hard to balance costs while meeting the needs of your employees. Your people are your greatest asset. If the rising costs of offering benefits like healthcare has become more burdensome than ever, you are not alone.
Many small businesses in Texas are receiving their 2023 group insurance renewal rates, and are shocked at the price increase for the exact same health benefits heading into the new year. Increases of over 15% are not uncommon with one study claiming the average to expect is roughly 5.6%.
In this article we’ll talk about why offering employer-sponsored health plans are important, why the group insurance rates keep going up, and what you as a business owner can do about it.
Employer-Sponsored Health Plans Are Vital to Your Business’ Success
As a business owner, you know how much work it takes to keep things running. Why? When something goes wrong or a valuable team member is unable to show up to work for one reason or another, you’re likely the person who steps up to do whatever needs to be done. Without your employees, your business can’t be successful.
This is why retaining your employees is so important. Not only is their work, talent, and skillset valuable, but losing them can be expensive. One study states that it takes 6 to 9 months worth of an employee’s salary just to replace them. That means if your employee makes $65,000 a year, it may cost you almost $49,000 to find someone new, train them, and get them up to speed in their role!
People leave jobs for many a variety of reasons – perhaps, they’re following a spouse who is moving? Or choosing to stay home or go back to school. But many people leave their current employers for opportunities with higher pay and better benefits. Ensuring your benefits are competitive plays a significant role in keeping your employees happy and loyal to you.
Even if your employer-sponsored plan rates are increasing, simply cutting back on your benefits or eliminating them altogether is not an option. Offering a generous benefits package is like having a built-in employee retention program.
But that doesn’t solve the problem. The rates are so high! What if it’s just not in your budget to handle an increase?
Why are Group Insurance Rates So High this Year?
“Our rates have increased 15% from this year to next year! What in the world is going on?”
This is a common stressor we’re handling here at Advanced Benefit Solutions. You’re not alone! Premium rates for group insurance plans are continuing to increase in Texas and throughout all 50 states, and it’s not just your business that is dealing with rising costs.
As you may have guessed, inflation is enemy number one. Combine record inflation with the lingering effects of Covid and the increased utilization of benefits, everyone is feeling the economic squeeze.
We understand that it is more important than ever to do everything we can to help you manage the budget for your business. If costs are rising everywhere for everything, that means your cost of doing business is increasing, too.
In times of economic uncertainty, it’s more important than ever to stay organized and do what you can to track expenses for your business, in more than just employee benefits. Like we mentioned above, retaining your employees is one way to avoid yet another hit to your bottom line.
Here are a few other cost control methods you can use in your business:
- Monitor All Expenses
Now is the time to be sure you know what you’re spending and where your money is going. What are your expenses each month? Is every one of those expenses necessary? Make sure you have a budget and that you are tracking where each dollar goes. You might discover creative ways to save!
- Track ROI and Consider your Profit Margin
We know we’re getting a little into your business (no pun intended!) but are you aware of what projects or customers bring you the most ROI? As costs are going up, you may want to consider an incremental increase in your profit margin to compensate for rising costs or shift your focus to those projects or customers that bring you the most ROI.
- Train All Employees on Efficient Time Management
Are you paying for time that isn’t getting results? Being a good manager means knowing how to respectfully communicate expectations to your team. You might be surprised at what can be accomplished in a shift, if only your employees know what tasks are required and expected. Even if you’ve done this before, it’s a good time to go over your time management policies, breaks, how employees use personal electronic devices at work, etc. once more.
- Minimize Overhead & Consider Outsourcing
Just like a personal budget, a business budget often can have hidden expenses or items that you’re paying for but not getting your value from. Is there a program your employees have but they’re not using? Are you paying for multiple logins when you don’t need to? What about business expenses like phone service, etc. that you could consider rate shopping? If you’re looking at your benefits rates, now is the time to consider outsourcing routine tasks or looking for other ways to minimize your overhead.
What Can I do about my Group Insurance Rate for 2023?
Here’s what we’re going to do when you call about a lower group insurance rate:We’ll talk about your existing plan and what you like about it. Then, as an independent insurance broker, we can research the available plan options within the market to try to lower your rate as much as possible. Many times we can find a nearly identical plan with a different carrier that will reduce your rate increase!
There is no obligation to purchase a plan through us, but you’ll be glad you called. Why?
- We help keep your employees happy.
- We take care of all the paperwork.
- Our team researches the entire market for ANY available plan, and works to meet your needs.
Don’t wait! You’ve only got a few weeks to review to see if you can lower your group insurance rate and make a decision if you have a January 1 renewal. Request a call with a knowledgeable member of our team. It only takes a few minutes, so you’ve got nothing to lose!