More often that not, employers want to offer “Comprehensive” medical benefits. What that usually means to employers is a “traditional” plan where everything is covered with low deductibles. Unfortunately, a traditional plan might not make sense to both the insured and the employer.
WHY?
Because people want insurance to protect the “WHAT IF” but they rarely go to the doctor. Last time I checked it was something like 92% of all health insurance claims come from 8% of the insureds.
WOW. I mean do the math, that means the reverse must be true. 92% of Insured’s only account for roughly 8% of claims.
Usually large deductible plans scare employees and employers because it’s different, its not what their used to. But overall it can work out better for both parties given how often they see doctors.
Here’s a quick example:
Option 1: A Traditional Plan
Monthly cost $1100/ Doctor Co Pays $30
The cost per year is $13,200 Without Co-Pays
Option 2: A High Deductible Plan
Monthly Cost $900/ Family Deductible $5000
The MAX cost for insurance is $10,800 + the deductible of $5000 for a TOTAL of $15,800.
So with a high deductible plan you would pay less a month but be responsible for the first $5000. It becomes a matter of preference, and how often you go to the doctor.
You can end up paying a higher amount upfront with a high deductible plan when you count the deductible but it could benefit you in the long run if you see the doctor very often. You should always meet with someone before you make a change because considering all options can help make you a better educated consumer.
REMEMBER KNOWLEDGE IS POWER!
If you have any questions you can always reach me at 631-338-9917.
Related Posts: Hoosiers and Health Savings Accounts
Related Posts: What's a H.R.A & How is it different then an H.S.A?
Related Posts: What's the difference between an H.S.A & a F.S.A?
Related Posts: What's a Health Savings Account (H.S.A) and why I should consider one
Related Posts: Using a Health Savings Account to pay for Cobra
Subscribe to:
Post Comments (Atom)
A..
ReplyDeleteYes, HSA/HRA’s need to be shown to your group(s). I understand the hesitation around the change from traditional insurance and the effect it could have on key personnel but there are ways to minimize impact and actually in the process retain/attract those people who make a company go.
I like to frame for a C level executive to do what’s right for the company and concern him/herself with the key personnel in another way. They in fact have two work forces. First the 9 to 5 day to day work force who are important as a group and really this is who the basic benefits package is built for. Then there is the work force who I like to say if they left tomorrow would leave a giant sucking noise in their wake. These are the people who 40 hours are a minimum, they could be responsible for share holder growth, could hold the professional licensees that power the corporation, key sales person engineer etc. This is the work force you take a look at in a different way.
I’ve had success across the USA in mating up an Executive Health Plan to take care of the needs of this second group, thus providing the savings to the company taking a small amount of that savings and creating a vehicle that really retains the right people to power the company.
Feel free to give me a call sometime if you want to chat
JOE
Joe Luscavage
610.613.9887
Jluscavage@armadais.com