Ways to control the rising cost of health insurance premiums

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%.

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