Local Group Health Broker Strategies to Save and Retain Talent

One of the most common questions Georgia business owners ask is: What’s the minimum amount I can contribute toward employee health insurance? While cost control is essential, focusing solely on minimum employer contributions could hurt your ability to attract and retain top talent.

A local group health insurance broker can help businesses balance affordability with competitiveness, ensuring you offer attractive benefits while keeping costs under control. Let’s explore how employers can strategically lower contributions without driving employees to competitors.

Understanding Employer Contributions to Health Insurance

Employers in Georgia typically contribute around $580 per month per employee for health insurance. Employees, on average, contribute $138 per month toward their coverage. However, insurance carriers such as Blue Cross Blue Shield, UnitedHealthcare, Aetna, and Cigna require employers to cover at least 50% of the employee-only premium to qualify for a group health plan.

That means if the lowest-cost health plan option is $500 per month, an employer could legally contribute just $250 per month—but is that really the best strategy?

Why the Minimum Contribution Might Hurt Your Business

While contributing the minimum may seem like a cost-saving measure, it could lead to several unintended consequences:

• Higher Employee Costs – If employees are forced to pay significantly more out of pocket, they may see this as a pay cut and seek employment elsewhere.
• Lower Employee Satisfaction & Retention – Offering a high-cost plan with minimal employer contribution could drive away top talent.
• Reduced Plan Participation – If employees decline coverage due to high costs, it could result in adverse selection, increasing premium rates over time.

A better approach is to find cost-efficient strategies that reduce employer spending without sacrificing employee satisfaction. This is where a local group health insurance broker in Georgia can help.

How to Lower Employer Contributions Without Hurting Employee Benefits

Instead of asking, What’s the minimum contribution I can make?, a better question is: How can I offer affordable benefits without increasing my costs? Here are a few proven strategies:

1. Offer Multiple Plan Options

Rather than offering just one plan, businesses should provide at least two options:

• A high-deductible health plan (HDHP) with a lower monthly premium, reducing employer costs while giving employees an affordable option.
• A standard deductible plan for employees who prefer lower out-of-pocket expenses.

By keeping your employer contribution the same across all options, employees have more flexibility while your business maintains cost control.

2. Utilize a Defined Contribution Model

A defined contribution approach allows businesses to set a fixed dollar amount toward employee health benefits instead of a fixed percentage of premiums. This helps employers control spending while giving employees more plan choices.

3. Consider Level-Funded or Self-Funded Plans

For businesses with 50+ employees, level-funded and self-funded health insurance plans can provide significant savings compared to traditional fully insured plans. A local group health insurance broker can evaluate whether these options make sense for your business.

Why Work with a Local Group Health Insurance Broker in Georgia?

A Georgia-based health insurance broker understands the regional insurance landscape, ensuring that businesses can:

• Find cost-effective plan options tailored to their industry.
• Negotiate better rates with local carriers.
• Ensure compliance with state and federal regulations.

Find the Right Group Health Insurance Broker in Georgia

If you’re searching for a group health insurance broker in Georgia who understands how to lower employer contributions without sacrificing benefits, BIS Benefits is here to help. We work with businesses throughout the state, including Roswell, Sandy Springs, and beyond.

To learn how your business can cut health insurance costs while keeping employees happy, visit our Group Health Insurance page or contact us today!