Are you over-insuring your employees?

To find out, run a simple test:

... [give your HR director] an insurance brochure for [some] small group insurance plans, ... including HMOs, PPOs and HSA-Compatible Health Plans. [Also give] her a rate sheet so she can see the premiums for each of the plans. Then [ask her], “If you had to pay the entire premium yourself, which plan would you choose?”

If she doesn't choose your current plan, then you are paying for something that she wouldn't purchase herself. Here is what is likely to happen:

[she will] chose an HSA-compatible plan with a $3000 deductible. With this plan, she pays all costs up to $3000 and the insurance company pays all costs over the $3000 deductible. ..."Since it’s my money, I would rather put that premium saving into a health savings account than pre-pay for low office visit and prescription copays I rarely use.”