Managing Overhead Costs? Choose a Stable Health Insurance Plan
July 30, 2025 | Tags:
Achieving long-term success is a goal of many small businesses, including yours. But overhead costs can make this challenging. Every business incurs overhead costs. One way to manage these expenses is by reducing certain costs, such as health insurance. Consider asking yourself questions like:
- “Are my employees getting what they need from their health insurance plan?”
- “Is there a lower-cost option with comparable health coverage?”
- “Are there benefits or services in our current plan we’re not utilizing?”
Choosing the right health insurance plan can help lower your business costs while still providing valuable benefits to you and your employees.
The role health insurance plays in overhead costs
Overhead costs are expenses that support your business but aren’t directly associated with a product or service you sell. They fall into three main categories:
- Fixed: Costs that stay the same regardless of production or sales, like rent, licenses, loan payments and health insurance premiums, which will remain fixed within the plan year but can increase or decrease upon renewal.
- Variable: Costs that can fluctuate and are not always monthly, like marketing, shipping and maintenance.
- Semi-variable: Costs that occur monthly but vary in amount, like sales salaries, overtime and travel expenses.
Because health insurance is a significant fixed cost in your overhead expenses, it’s important to carefully consider the needs of you and your employees when selecting a plan.
Choosing a cost-effective health insurance plan
Your employees have unique health needs based on their age, medical history and personal circumstances. Understanding this helps you choose a plan that offers appropriate care and a range of coverage options.
Explore various plan types, like PPO (Preferred Provider Organization), HMO (Health Maintenance Organization) or POS (Point-of-Service), for their advantages and determine which best suits your business financially. Assess available providers to ensure your employees have access to a large network.
Some health plans might have additional cost-saving opportunities, so be sure to check what options are available. For example, the COSE Benefit Plan offers savings through programs like Multi-Policy Bundling Credit, a one-time invoice credit for small businesses when they bundle specific benefits, coverage or insurance with their health plan.
Finally, consider services that are local to your business, which can significantly improve customer service experiences and ensure your employees receive the care and attention they need.
Strategies to further reduce healthcare costs
Healthier employees lead to lower healthcare costs. Investing in your employees with a comprehensive benefits package is one way to achieve this. Provide specialty products like dental, vision and life and disability insurance as preventive, cost-effective options to help employees stay healthy, happy and productive.
Wellness programs also offer discounts, programs and resources that support lifestyle goals and create healthy environments for your employees. When employees feel their best, it results in fewer health-related absences, increased productivity and higher morale. These programs can also help manage chronic conditions like diabetes or high blood pressure and prevent associated risk factors like smoking or physical inactivity, ultimately reducing medical claims and lowering healthcare costs.
Secure quality coverage today
If you’re a small business interested in a cost-effective health insurance plan, specialty products and wellness programs, consider enrolling in the COSE Benefit Plan and joining more than 8,300 small businesses who save on healthcare.
To enroll, you must join COSE and/or one of the affiliate chamber partners from the list found on the COSE Benefit Plan webpage. Medical Mutual also offers small group plans and products, like level-funded and ACA plans, to best fit the unique needs of your business. Call your broker or request a sales consultation with your Medical Mutual Sales representative to have them guide you through plan options for your employees.