Small business health plans that cut costs instantly

Types of Health Plans That Cut Costs

One popular option is the Health Savings Account (HSA)-qualified high-deductible health plan (HDHP). These plans typically have lower premiums, which can lead to significant savings for both the employer and employees. By pairing an HDHP with an HSA, employees can set aside pre-tax dollars for future medical expenses, effectively reducing their taxable income and providing a financial cushion for healthcare costs.

Another viable strategy is to consider level-funded plans. These plans combine the predictability of a fully insured plan with the cost savings of a self-funded plan. Employers pay a fixed monthly amount, which covers claims, administrative fees, and stop-loss insurance. If the claims are lower than expected, the employer may receive a refund at the end of the year, offering a direct financial benefit¹.