Tips for asking insurance providers for a discount

As the economy continues to sputter and the health costs continue to rise, insurance providers are raising their rates. This means employers are paying more for insurance coverage for their employees. In some cases, the employer is simply passing the cost down to employees; however, in many other cases, the employer is trying to find ways to get insurance providers to give them a discount. If this were as easy as simply asking insurance providers for a discount, many companies would have already done it. Unfortunately, simply asking is not the most effective way for getting discounts on insurance. Here are a few tips for asking insurance providers for a discount.

Number of Employees

Larger companies may find it easier to ask for discounts as they are giving the insurance provider lots of business, especially if the company has been with a certain insurance provider for a long time. Loyalty, coupled with a large number of healthy employees that use the insurance, may be enough for large companies to get a discount on insurance.

Switch Providers

Because insurance providers are all competing against one another, rates are going to fluctuate. Employers should do some research and see if they could get a lower insurance rate with their current provider's competitor. Because switching to another insurance provider would be a large hassle, employers should present the lower rate to their current provider and see if they will match. Most will match the rate. If they don't go for the offer, it might be worth all of the hassle to switch to the competitor for the lower rate.

Create a No Smoking Policy

Many insurance providers offer discounts to companies that have a no smoking policy. When companies enforce the policy and offer employees smoking cessation classes or free nicotine patches, the company will put themselves in a position to get a discount on insurance. Some companies have gone as far as firing all smokers unwilling to quit in order to keep insurance costs down.

Wellness Program

Another way companies are securing discounts from their insurance providers is by implementing a wellness program. These are programs that help employees deal with stress, eat healthier, exercise more, and promote overall employee health. Wellness programs are considered preventative measures because they can actually help reduce the frequency that employees visit the doctor.

There are many different levels to a wellness program. Some companies offer a weekly wellness tip through a mass email. These tips encourage employees to eat better or walk more. Other wellness programs employ wellness experts and have installed full gyms. No matter what size wellness program an employer implements, helping insurance providers see the benefits to the wellness program can help employers secure discounts on insurance.

Simply asking insurance providers for a discount is not the most effective way of going about getting a discount. Employers should consider building up some persuasive reasons for deserving a discount. Some persuasive reasons may include loyalty to the provider or a large number of healthy employees, a threat to switch providers, a no smoking policy, or the implementation of a wellness program. By showing the insurance provider that the company deserves a discount, the insurance provider will be more likely to give discounts.

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