Small businesses are getting notices about their premium and coverage changes for 2018, and some are making adjustments as a result.
The changes vary depending on the state where a company is located, how many employees it has and how comprehensive its insurance is. But many owners are facing rate increases of double-digit percentages or dramatically reduced coverage—or both.
Health insurance consultants expect more owners to rethink their strategies beyond 2018 and choose alternatives like paying for claims themselves or adding health services that can lower costs.
Some are even considering providing different types of coverage for their employees as they learn what their 2018 health insurance costs will be.
James Bernstein, an executive at benefits consulting firm Mercer, says many businesses offer employees a choice of plans to serve staffers’ needs but also keep their own costs in line.
“What they’re saying is, a one-plan-fits-all strategy does not work, especially with a multigenerational workforce: millennials, young families, baby boomers,” Bernstein says.
A Mercer survey found many small businesses are considering coverage that has a higher deductible and in turn, lower premiums. These plans shift more costs to employees, but many owners contribute money to Health Savings Accounts, or HSAs, to help staffers pay medical expenses.
