As health insurance premiums continue to rise, the following are the most common strategies medical practices use to control these costs:
1. Look for lower premiums by switching health insurance companies;
2. Change coverage benefits by increasing deductibles, copayments, etc. (practices are also setting of health savings accounts when this happens);
3. Eliminate coverage benefits – ex. Eliminate dental coverage; and
4. Have the employee subsidize part of the premium.
Out of all of the strategies above, the most common strategy is #4 – the employee subsidy. Most practices I see have the employee subsidize 10-20% of the premium even though I’ve seen it go as high as 25%.