BY: Rodger A. Bayne
President, Benefit Indemnity Corporation
Phone: 443-275-7412
Email: rodger.bayne@benefitindemnity.co
Many employers find it rewarding to provide quality health benefits for their employees. Still, others find it a necessary evil. Most producers find that using the most innovative strategies is a more fulfilling aspect of their job. Meanwhile, other agents simply want to keep the business on the books the easiest way possible.
We all know the old 80/20 rule, where eighty percent of claims come from twenty percent of the people. What many of us fail to realize is that this is also true on a group basis. Many groups have incredibly low claims while others have big catastrophic claims.
This is where rewards come in. Self-funded health benefit plans offer groups the opportunity to be rated more precisely for their own specific demographic situation. Location, industry, age, gender and health status can all add up to great savings for some groups. While not everyone will save, as many as 60% of your clients may be able to save significant costs on their benefits, compared to the fully insured market place.
Given the restrictions and community rating in the small group insurance market, most employers find the ever increasing rates and ever decreasing benefits to be disturbing, frustrating and outrageous! This is part of the reason they are struggling every day to BUY LESS INSURANCE through the use of side funds, of various flavors, like Consumer Driven Health Plans. CDHPs, such as HRAs and HSAs, are simply a means by which employers can use a more significant PART of their own characteristics to affect rates.
WHY NOT SAVE EVEN MORE? The value and positive effects of Consumer Driven Health Plans are even greater when using self-funded plans (remember Level Funded is self-funded)! First, you purchase even less insurance, therefore have even lower costs. Next, you receive a free and full evaluation of medical status of your group BEFORE leaping into such a program. After all, who wants to go into a high deductible plan blind, when they could have a professional evaluation of their expected claims and utilization in advance, for free!
Finally, in self-funding, we find competitive benefits, competitive rates, refunds of unused claims funds and over 80% persistency! As a result, more and more employers are finding comfort in knowing that they have a choice in this free enterprise system, a choice to do better!
Are you ready for your rewards?
 | Rodger A. Bayne President, Benefit Indemnity Corporation Phone: 443-275-7412 Email: rodger.bayne@benefitindemnity.co |
