Question for Veteran Independent Agents and Brokers Selling Group Health

[Key2Success]

Company healthcare is required for companies with 50 or more workers, and it is required for all workers to have it! If they do not work for a company with a plan they have to get it on the market and that is very high deductibles and not cheap for most workers. The biggest problem with this program is that the premiums for these company plans are rising higher and higher every year. In some states the premiums are rising by double digits. Businesses are trying to stay in budget and there is ONLY one way for them to do that (besides our plan) and that is to go for a cheaper plan every year (that means one with a higher deductible for their workers) that puts the worker at more risk for out-of-pocket responsibility for their medical bills.

The employer’s are stuck in a cycle of giving their employees less and less benefit every year. They do not want to do that, but they have no choice if they are going to stay in budget.

Question: How are you addressing the problem in order to maintain and/or gain clients?

Thanks!

 

[JamesP]

Alternate funding methods, HRA’s there are many ways these can be designed, for example, the employer can fund part or all of the in patient deductible, they can add $$’s for wellness credits. Also, gap plans, I wrote an Aetna AFA, place a gap plan to cover most of th out of pocket costs and the rates were considerably lower than the renewal with the incumbent carrier. Depends on the size group, but level funding is a good alternative as well.