- Employee and Wife
- Employee, Wife and 3 children
They currently had a $1,000 deductible plan and the monthly premium was going to be approximately $3,300 per month at renewal. We recommended that they switch to the $3,000 deductible plan which was approximately $2,700 per month, however, since the group was healthy, have very few claims and had no expected claims the next 12 months. Why not keep the $600 per or $7,200 in-house rates then send to the insurance company.
How did the employees feel about the increase from $1,000 to $3,000? The employer installed an HRA (Health Reimbursement Account) that limits the employee exposure to the same current $1,000, while reimbursing any amount incurred past the $1,000. Keep in mind the employer has $7,200 in savings to fund any claims the employees have through the HRA. Bottom line is that if you are a small employer in good health, you need to looking at funding the health insurance needs of your and your employees creatively.