Small Group Health Advice in CT

MAPDJim · 07-31-2008, 11:45 AM

I came across a dry cleaner who wanted workers comp rates.

He also wants quotes on his home and cars and then dropped this on me.

He is the VP of a dry cleaners association with some 300 members and wants me/us to put together a group health plan to offer to the association.

I work for a large independent P&C agency with 10 offices. We can handle residential and commercial P&C (over 12 companies) but we only have 1 health company relationship. (BC BS)

I'd like to have other options. Any advice on what health companies offered here in CT that might be good for small groups (like 2-7 person small biz) would be a great help.

moonlightandmargaritas · 07-31-2008, 12:09 PM

I wouldn't waste too much time.

Seen more pie-in-the-sky ideas like this over the years than I care to count.

Dry cleaner's employees, how much do they make? Will they take food off the table to buy the association's health package?

Nice altruistic idea, but the practical application is that very few can afford to join.

LGilmore · 07-31-2008, 12:41 PM

What I've found in my state is the insurance carriers simply don't want to deal with new associations. They don't want to underwrite a new association.

So I agree with moon, it's a nice idea dependent on others willing to help you get it going. I think you'll find little to no help for a startup association.

MAPDJim · 07-31-2008, 01:39 PM

It's not a new association. They had another group provider but the rates kept going way up and they want alternatives as it appears their rep has ignored them.

I am more excited about the GL, workers comp and home and auto that could come from this than I am about the group but if it is done properly it could be a good thing.

Alston · 07-31-2008, 07:20 PM

If the group is small and has low turnover, you might consider offering individual plans. Anthem has the Tonik plan and Aetna has good plans as well.

The problem with buying individual plans, of course, is the underwriting. However if everyone can be underwritten, they will get lower rates.

ABC · 08-01-2008, 09:49 AM

The reason there rates are going up is because they might have very high claims.

What you should do is quote out just his employees on a group health plan. Start with those numbers and see if he is will to contriubute to their premiums.

I have dry cleaner clients. I have never been able to put a group plan in place its been all indiviudals. The reason as stated in another post is the employee's do not make enough money to pay a portion of their premiums. You can have one store with 7 full time employees and the manager is the only one that will pay for it.

If i were you I would chase the business just to show the owner that your working very hard for him.

TXINSURANCE · 08-01-2008, 11:26 AM

Can you write 1 man groups in CT?

MAPDJim · 08-01-2008, 09:00 PM

Originally Posted by ABC

The reason there rates are going up is because they might have very high claims.

What you should do is quote out just his employees on a group health plan. Start with those numbers and see if he is will to contriubute to their premiums.

I have dry cleaner clients. I have never been able to put a group plan in place its been all indiviudals. The reason as stated in another post is the employee's do not make enough money to pay a portion of their premiums. You can have one store with 7 full time employees and the manager is the only one that will pay for it.

If i were you I would chase the business just to show the owner that your working very hard for him.

You may have nailed this one in regards to employees not being able to afford the group plan premiums.

This guy has 3 locations and 6 employees plus his wife and himself. The only full time employees are he and his wife.

Granted this guy has a small organic dry cleaner operation and others may be bigger with several full time employees so their may be a reason to present both group and individual.

The better part of this is the proposal I gave him for GL was 5% cheaper than what he was paying and the workers comp quote I am told is really hard to beat. (He just said beat what he was paying and he'd give me the rest of his business and turn me on to his association for the health.)

Even better than that I discovered The Hartford is paying 18% for the GL and 15% for the workers comp.

Doing the quote for a dry cleaners was easy (doesn't own the buildings) and the software and support makes me think this type of niche market might be what I was looking for.

ABC · 08-04-2008, 03:49 PM

Write the couple on an indiviudal policy. If you can get them approved you should be able to save them money.