Use a Wellness Program to Reduce Health Insurance Premiums

A wellness program is a plan that encourages employees to maintain their health. This could be reimbursement for health club memberships, stop smoking classes, or any myriad of ideas to improve employee health. Used properly it can be part of a plan to reduce business insurance premiums.

According to experts, for every $1 spent on a wellness program, a business saves $3 in reduced claims. But, businesses have been reluctant to spend the money on a wellness program because insurers have not responded with a direct premium reduction.

But, this may be changing. An article in the San Francisco Chronicle on Friday noted that Blue Cross of California was willing to cut premiums by 10% for a company that had instituted a wellness program. When you are looking to lower premiumsconsider instituting a wellness program, documenting the plan, and ask about a premium reduction.