advantage 3Recently we were working with a small company that had three people on their health insurance:

  1. Single
  2. Employee and Wife
  3. 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.

If you would like Advantage Benefits to review your current health insurance plan, send me an e-mail.    We represent all the major health insurance carriers.