GROUP HEALTH PLAN COSTS AREN'T COMING DOWN!
It may be time to re-think your funding alternatives...
Employer Excess Loss Insurance for employers of all sizes who want to share in the risks and the profits of providing affordable groups health benefits for their employees.
AGENT FRIENDLY: Pays writing agent a 10% sales commission
BUDGETABLE: Employer knows their maximum risk exposure up front
EXCLUSIVE: Available through Shepler & Fear General Agency
FLEXIBLE: Can be used with any carrier who permits its usage with their product
SIMPLE: Employer uses the services of a licensed/bonded Third Party Administrator (TPA)
SECURE: Coverage issued by an "A" rated/non-admitted carrier through a licensed surplus lines broker
Coverage can be used to supplement or reduce risk exposure for "Self-Funded" group health plans or for fully insured "High Deductible Health Plans" that are wrapped with a "Health Reimbursement Arrangement"
Real Life Example
Employer has 50 enrolled employees with 15 enrolled dependent units (total of 75 persons). Currently purchases traditional fully insured coverage (HMO/PPO dual option with "Gold" level benefits). Currently monthly cost is $36,217 per month or about $434,609 annually (Proposed rate increase of 12% will bring annualized cost up to $486,760)
Senario - Employer establishes an "HDHP/HRA wrap" plan (provides 80% HRA benefit up to maximum of $5,200 benefit per year - per employee, x2 for family). Cost considerations:
|ANNUALIZED COST OF:|
Employer Excess Loss
Employer Exess Loss
|High Deductible Health Plan|
|Administrative Services Package|
|Maximum Paid Claims|
|Employer Exess Loss Insurance Premium|