Perhaps you’ve been on the receiving end of an email like this:
“Your group health insurance premiums are going up 25% next year.”
One of our small business clients, who we’ll just call “Dunder Mifflin,” recently received such a notice.
They had a good health insurance plan and were insured by the biggest insurance company in the state. They genuinely tried to take care of their 15 or so employees.
But this renewal (the “welcome to Obamacare” renewal) was a problem.
So we got to work on a solution.
The Savings
What if I told you that you could keep the same level of benefits you currently provide while saving more than $46,000 next year?
We were able to present Dunder Mifflin with a group health insurance plan that would cost them nearly $4,000/month less than the renewal premium they got from Big Insurance Company.
And they would not be compromising their benefits at all.
The same deductible. The same out-of-pocket costs. The same copays.
Really.
How We Got Compelling Savings
We achieved this result for our client by thinking outside of the box.
1. We installed a partially self-funded health insurance plan with a higher deductible. (I’m not contradicting myself – stay with me.) The employee deductible in this case went from $2,000 to $5,000.
They continued to have 100% coverage after the deductible and the same office visit copay as they had with the previous insurance company.
Learn more about partially self-funded health plans here.
2. We added a “gap plan.” A gap plan is designed to fill in a gap in coverage – hence the name. In this case we installed a plan that covered employee claims between $2,000 and $5,000.
The Result
For employees, the only real change was that they had two insurance cards instead of one. At the end of the day, they still had a $2,000 deductible just like they did before.
Of course they also had less money deducted from their paycheck to cover their portion of the health insurance plan.
The employer was able to continue offering health insurance benefits to their employees. Because the new major medical plan was a partially self-funded plan, they could actually get a refund on some of the premium if the company has a good year in terms of health claims. (Yes, they could save even more).
(By the way, you don’t have to use a partially self-funded plan to realize significant savings. In fact, you may not even have to switch insurance carriers).
Would this Work for You?
There’s only one way to find out.
And before you ask, no you do not have to wait until your current plan renews to explore this proven solution. We can run the numbers for you right now.
For Dunder Mifflin, the solution was compelling. Perhaps it will be for you too.
Let’s find out:
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