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.
AFFORDABLE: Premium for coverage is about 20 cents for each $1.00 of benefit purchased (+applicable state surplus lines tax)
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”
Employer Excess Loss Insurance
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: | Without: Employer Excess Loss Insurance | With: Employer Excess Loss Insurance |
|---|---|---|
| Administrative Services Package | $21,000 | $21,000 |
| Employer Excess Loss Insurance Premium | 0 | $34,882 |
| High Deductible Health Plan | $191,454 | $191,454 |
| Maximum Paid Claims | $338,000 | $169,000 |
| TOTAL COST: | $550,454 | $416,336 |
Contact your Dickerson Sales Rep today. (877) 361-7342
email: sheplerfear@dickerson-group.com