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Work Health Insurance Plans

2,032 Views | 11 Replies | Last: 6 yr ago by Gabriel Belmont
The Pilot
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AG
Small engineering design firm (less than 10 employees). Our health insurance plans have increased over the last few years as I'm sure is the case for everyone. We've used a broker to help us find the "best plan". The last few years we've had Blue Cross Blue Shield.

What are other small businesses doing? Would we get a better rate going directly through BCBS?
Marvin_Zindler
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AG
Talk to AgAttack at Take Command Health. They will help you navigate.

www.takecommandhealth.com
AgAttack
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Hey hodgesco - Thanks for the reference!

Hi Pilot,

We've helped a lot of other small business owners on this board switch to a tax-free reimbursement model. IE, instead of shopping for a plan for the company, you just set up a tax-free health allowance for employees to spend on their own. It's based on a new law that just became effective this year and is typically much more affordable and flexible for small businesses. Turns out when you optimize at the employee level versus guessing on a group plan, you can save a lot of money and employees get what they want.

Here's our site that explains: https://www.takecommandhealth.com/small-business-health-insurance-qsehra

I'd love to learn about your engineering firm and see if we'd be a fit. If you're interested, please PM me or you can email me at jack@takecommandhealth.com.

Thanks!

AgAttack
selk
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Pilot, would love to speak with you about your options, we have several PPO options that are great for the self-employed and small business. jse88 @ yahoo.com is my personal email
goodman
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What are other Small Businesses doing?

You have few options as a small business (<50 FTEs as defined by ACA). Your rates are going up because your default is a community rated plan based on age and zip code, not underwriting. Here are a few things my clients are doing to reduce costs and still offer benefits:
  • Tax free reimbursement model described by Ag Attack
  • Plan design changes: narrow networks, in network only plans, etc. BCBS really doesn't have a lot to offer as far as creative plan designs go.
  • Level Funded (partially self-funded) plans that remove the community rating guidelines and allow you to pocket the difference between premiums and claims costs.

Would we get a better rate going directly through BCBS?

I don't think you even have that option, but if BCBS will go direct, you would save around 4%.


Let me know if you are interested in walking you through your options and I will post my contact information.
cmoney00
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Have you considered a PEO? Might be worth evaluating. It stands for Preferred Employment Organization. If you would like to evaluate, I can have one of my people reach out to you. Concept essentially drives down the cost of health insurance cost by putting you under the umbrella of a huge group. There is a due dillegence process, meaning you have to be accepted into the group. If you know nothing about it, worth looking into.
Cmoney00
Pelayo
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The Pilot said:

Small engineering design firm (less than 10 employees). Our health insurance plans have increased over the last few years as I'm sure is the case for everyone. We've used a broker to help us find the "best plan". The last few years we've had Blue Cross Blue Shield.

What are other small businesses doing? Would we get a better rate going directly through BCBS?
Cigna works with a lot of TPA to offer companies from 8-50 employees for level funded plans, where it is partially self insured backstopped by reinsurance.

We have am open access PPO through Cigna, deductible of 2K, max OOP 3k and are averaging 525 a month for Employee Only coverage, with so far monies left over in the claims fund so our real OOP rate is closer to 425 a month. We are on year three. We hvae a risk pool or 27 employees + dependents. My health insurance cost me 2-3% of my revenue.

Look into ATA or Starmark. Loads better than most offerings to small business. PM if interested in more details.
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
Reloadags1998
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AG
Just went through that here. 2017 premiums increased 27% compared to 2016. We decided to swallow the increase as the other PPO markets where not significantly better and we have a few employees with health issues that knew how to navigate BCBS now. The "enemy you know" type situation.
Pelayo
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AG
these days any non-exchange PPO is your friend. Others esp UHC are riddled with narrow network exclusions.
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
Husky Boy Jr.
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AG
Interesting conversation...have been through this with a number of clients - I've never tried to purchase directly from a carrier, but if its 4% more through a broker - that 4% is money very well spent if you have a good broker. Recently had a client use the PEO model and save a good bit of $$$.

My understanding is that in the small group space pricing flexibility is limited and your best bet is to find an effective broker and have them shop it for you.
Pelayo
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AG
Husky Boy Jr. said:

Interesting conversation...have been through this with a number of clients - I've never tried to purchase directly from a carrier, but if its 4% more through a broker - that 4% is money very well spent if you have a good broker. Recently had a client use the PEO model and save a good bit of $$$.

My understanding is that in the small group space pricing flexibility is limited and your best bet is to find an effective broker and have them shop it for you.
correct, one that will look at all options
No material on this site is intended to be a substitute for professional medical advice, diagnosis or treatment. See full Medical Disclaimer.
The Pilot
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AG
Can you post contact info?
Gabriel Belmont
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Cmoney00, which PEO are you with? I'm with Insperity, and have worked with some great companies to help on their medical cost, as I know many others have as well with other PEOs.

If anyone is considering a PEO, there are certainly some amazing positives of them, but they also aren't for everyone. Just like any industry, there are good ones and ones that can really mess things up, and each one can take a slightly different approach.
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