Worker's Comp Bundled with Group Health Carrier or POP/Cafeteria

[Consultant]

Hello all,

I only carry a health/life license and wanted to know my options on offering Worker's Comp to my groups. I know that Anthem Blue Cross in California offers EMPLOYERS worker's comp. They also decrease the rate 10% and up to 10% decrease in group health premium.

Any other bundles with carriers, HSA, HRA, that can do this too in CA?

I would hate to force Anthem down their throats just cause I want to consolidate their agents. (Group health & WC)

I know I can get in touch with a P&C specialist but right now all the ones I've spoke with are dual licensed and give off sneaky-snake-y vibes!

Cheers!

 

[Cranson]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

I am not aware of any Health Companies bundling Work Comp. I know PEO's often do it but not the Health Company.

I always thought it made sense for Health/Life Brokers to get a P&C license to at least offer Work Comp. Its a pretty easy to understand type of coverage and you could get a few contracts with some carriers. Let me know if you want help writing the Comp until you get licensed. I am licensed in CA but don't do any Group Health/Life stuff, just P&C.

 

[ABC]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Interesting topic.
I have my PC license but never have done anything with it.

In the mid west we have a captive company called federated and the bundling discount is their schtick. They have had success in blue collar industries.


Who knows come 2014 selling workers comp might be an easy move.

 

[somarco]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Several years ago a few carriers looked at integrating health with WC but as far as I know, were never successful. They tried it in TX since the WC laws there were somewhat lax at the time and employers were allowed to self fund WC subject to finding stop loss at $250k and proof of financial responsibility.

If you are wondering about a unified product, I am not aware of any.

All the PEO's I have seen don't combine the products but sell it as "we give you a package discount".

WC is probably one of the easiest P&C lines to learn but it is also a shoppers market. Price sells.

 

[djs]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Blue Cross in California actually offered a combined product a few years ago. As far as I know, it wasn't true workers comp though, but it simply removed the 'workplace, could be subject to workers comp', exclusion from the health policy.

It has its place, especially for small business owners (true mom/pop places).

I didn't think they offered it anymore. Perhaps they do. If I recall, it was more expensive than a separate workers comp policy, but there was a certain convenience involved.

Dan

 

[Air Jer]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Work comp and health insurance or totally different animals. Could a health insurance company do this? Yes but they haven't and there must be a reason. I'm not sure why they haven't but bear in mind that work comp is a volatile line of business and even the insurance companies that specialize in it (work comp only carriers) see this niche swing wildly at time between an underwriting loss vs. underwriting profit.

Right now, a lot of P & C companies are taking a bath with work comp. Maybe the health insurers don't want to expose themselves to this type of volatility? Seems they have their hands full right now with health insurance.

Also, why haven't P & C carriers and especially those companies that only do worker's compensation insurance come out with health plans? I just don't think the melding of the two is as easy as it looks to us.

 

[somarco]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Paying the medical claim under comp is no big deal. Benefits are identical within the state. Reasonably easy to adjudicate.

The challenge comes in loss prevention and managing the claim once it happens.

Health carrier can manage the claim after the fact but are clueless on loss prevention.

And there is more to WC than just the medical. You have death benefits and LOT as well.

I imagine P&C carriers are having a time with comp claims in much the same way as health carriers are right now. The downturn in the economy means those with health insurance are getting everything fixed before benefits run out and on the comp side workers who think they may be laid off are trying to collect comp benefits.

 

[Air Jer]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Also, the underwriting is different. I don't do much in the way of health insurance but the little I have done it seems the main underwriting focus is the health of the people seeking insurance.

In worker's comp, the health of the individuals does not play into it to a great extent. Things like what do they do and how well managed is the workplace (site). There is a big difference in insuring a general contractor, a HVAC contractor, a metal worker, a wholesaler and the list goes on for worker's compensation. What is their experience mod and why is it so high and what can be done to get it down (if you can find a market)? What is their experience running this type of operation - days or years? A host of other questions can come into play depending upon the situation.

As mentioned, from a claims standpoint, they are different. Work comp pays in addition to medical benefits, disability and retraining expenses.

They are different animals.

 

[Consultant]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Well I am writing Anthem BC in CA with "Employers" WorkComp with only a single license!

I have attached the brochure for reference. Keep in mind that this is underwritten by the carrier and can be denied. I am told by my administrators that if my group gets denied to push them to the State fund.

Please let me know if you think this leaves my group with large risk exposure as I am not privy to this area.

Salut!

 

[djs]

Re: Worker's Comp Bundled with Group Health Carrier or POP/Cafete

Looks like its fine. It's actually 2 separate policies, integrated into one marketing campaign.

Cool.

What's interesting is the brochure doesn't list acceptable occupations, though maybe they do elsewhere. Would they do roofers? Probably not. Might have to throw a few things against the wall initially to see what they will write.

While its mostly a marketing gimmick (because they call it integrated, but its still 2 policies, 2 carriers), it probably makes sense to a lot of people.

Dan