Originally Posted by ABC
I had one group with Great West with a 2 year run and it turned into a major mess. All the BS about waiving the first months premium.
I have been getting quotes on the level funded plans from a couple of carriers and so far I am not impressed. They are coming in at about 11% over current premium so there is just not enough savings . The plans have to come in at least at the current premium. I am also not sold on the claims funding rebate.
Take a group that is spending $150,000. On a level funded plan they are going to be eligible for a rebate on 1/2 or 1/4 of the $75,000. I just don't see that rebate being big enough. They should be eligible for 75% of the funding.
Now this could all change with community rating.
I worked actuarial and underwriting for a mid-sized mutual before going into sales/sales management. We had a lot of alternative funding business, both ASO with SL as well as FI Alternative funding.
Personally, I think any Fully Insured product that is a Self-Funded "look alike" for anything under 100 Employees is not a good fit. There is just far too much margin built in.
Nothing I see today is worthwhile and compares miserably to what was available 10-15 years ago through true Minimum Premium products or true Experience Rated Agreemnents that broke out pooling charges, expected and max non-pooled claims and admin costs (retention).
We (Trustmark) wrote a ton of this business for 100+ groups, mostly MP for schools/municipalities (many of whom required a FI contract) and Exp Rated for other Employers.
Tmk, Guardian, Principal, etc.... wrote a lot of this before getting shoved out by the majors. Great products, now gone, tho I suppose at 500+ ees, Cigna or Aetna might write a decent contract.
If anyone sees a solid MP with a corridor of 10-25% with deficit forgiveness (or even with deficit carrover) or an Exp Rated contract with margin at or under 5%, I'd love to hear about it for groups under 200.