Embed Size (px)
DESCRIPTION
easy to understand cost savings strategy combining mjor medical insurance and "3rd generation" GAP insurance
Citation preview
Saving Employee Benefit ProgramThe “Insured HRA” Plan
WE HELP INSURANCE BROKERS prospect, sell and retain more business and make more money!
WE “WHOLESALE” ONLY. 3 variations of medical “GAP” insurance.
WE ARE MARKETING EXPERTS. 20+ years of successful Agency building.
DICK CHELTEN,
CLU, ChFC, RHU
How to stay ahead of anticipated increases?
What to do about an aging workforce and early retirees?
Is there a strategy that will reduce costs but maintain your current benefit levels?
Options for Employer Groups
Do nothing, hope for the best, then watch your insurance costs go up year after year.
Implement risky “self-funding” schemes, hoping your claim costs are low and your monthly cash flow is sufficient.
Or...
Use a new, safe strategy to guarantee savings without risk…And still maintain benefits…
1.
2.
3.
INSURED HRAHigh
Deductible Plan
The “INSURED” HRA Strategy
Combine a High Deductible Major Medical Planwith an INSURED HRA Plan
Two Easy Steps
1) Modify current benefit plan to a
“High Deductible” (4k - 5k) Health Insurance PlanResult: Immediate savings on your annual cost of insurance
2) Add “FULLY INSURED” HRA coverageThis Supplemental insurance plan covers the increased deductible and coinsurance
Keeps out-of-pocket employee expenses same as current plan design
MAJOR MEDICAL + INSURED HRA
Equivalent coverage to current plans
Same employee out-of-pocket expenses
Lower annual premium costs Stabilized annual insurance
increases Typical annual savings up to
$2k per employee!
“High Deductible” Plan + INSURED HRA
YOUR SAVINGS!
Combined plans cost less with same coverage!
Similar “GAP” Strategies
Medicare + “Medigap” Supplemental Plans IBM vs. McIntosh-”Component” Based PCs Supplemental Dental and Vision Coverage
How It Works
Employees receive two insurance cards; one for Major Medical Plan and one for the INSURED HRA Plan.
Employees also receive an information card that tells providers how to bill for services whenever they receive medical attention.
If the service is covered by Major Medical but is subject to the new high deductible, employee’s bill will be paid by the INSURED HRA plan.
APPROVED
INSURED HRA STRATEGY IS ACCEPTABLE
FOR USE WITH MOST CARRIERSPPACA COMPLIANT
We recommend combining the HRA with a High Deductible Health Plan that offers Doctor’s office copayments. Look for
these features :Health plans with $5,000+ in deductibles/coinsurances.
Health plans where single rate for HDHP is $100+ lower than current.
Works best with fully insured plans.
Sample Case – Employment Services
Census Status Medical Total58 Employee $471.11 $471.1123 2 Person $1,130.67 $1,130.6710 Family $1,366.19 $1,366.1991 $66,991.69
Current Plan: BCBS CB4 $500 DD / 20% to $1500
Census Status Medical Total58 Employee $494.39 $494.3923 2 Person $1,186.55 $1,186.5510 Family $1,483.18 $1,483.1891 $70,797.07
Renewal Plan: BCBS CB4 $500 DD / 20% to $1500
Census Status Medical Insured HRA Total58 Employee $320.36 $93.47 $413.8323 2 Person $768.88 $175.01 $943.8910 Family $961.09 $248.01 $1,209.1091 $57,802.61
Proposed Plan: BCBS CB15 & Insured HRA to $500 Deductible / 20% to $1,500
Proposed Plan: Annual Savings Versus Renewal Plan $155,933.52This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many
different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration.
Sample Case – Consultant Firm
This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many
different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration.
Census Status Medical Total15 Employee $332.28 $332.285 2 Person $747.63 $747.639 Family $897.15 $897.15
29 $16,796.70
Current Plan: Health Plus $500 DD / 20% to $1500
Census Status Medical Total15 Employee $395.08 $395.085 2 Person $888.93 $888.939 Family $1,066.71 $1,066.71
29 $19,971.24
Renewal Plan: Health Plus $500 DD / 20% to $1500
Census Status Medical Insured HRA Total15 Employee $220.52 $84.67 $305.195 2 Person $518.22 $159.87 $678.099 Family $595.40 $225.54 $820.94
29 $15,356.76
Proposed Plan: McLaren POS & Insured HRA to $500 Deductible / 20% to $1,000
Proposed Plan: Annual Savings Versus Renewal Plan $55,373.76
Sample Case – Auto Dealership
This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many
different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration.
Census Status Medical Total95 Employee $364.40 $364.4042 2 Person $619.49 $619.4996 Family $759.39 $759.39
233 $133,538.02
Current Plan: Priority Health $1,000 Deductible / 20% to $2,500
Census Status Medical Total95 Employee $435.47 $435.4742 2 Person $740.30 $740.3096 Family $907.48 $907.48
233 $159,580.33
Renewal Plan: Priority Health $1,000 Deductible / 20% to $2,500
Census Status Medical Insured HRA Total95 Employee $198.28 $47.29 $245.5742 2 Person $475.88 $85.13 $561.0196 Family $594.86 $119.97 $714.83
233 $115,515.25
Proposed Plan: BCBSM SB 4000 and Insured HRA $1,000 Deductible / 20% to 2,500
Proposed Plan: Annual Savings Versus Renewal Plan $528,780.96
