Pay Less Get More (Benefits)
by Tom Monson
That’s the promise that everyone makes when they are trying to get you to sit down with then so they can try to sell you something. SometimeS it can be true.
But first let me ask you, if you have group health insurance, are you happy with it?
Are you happy with the service your agent is giving you?
If you are not happy with the service for whatever reason, did you know you can keep your current coverage and get a new agent?
What should you expect from your agent?
Every year they should compare plans for you. In this rapidly changing health insurance world, rates, coverage and the way your healthcare is handled can be subject to drastic fluctuations. Some companies raise their prices, improve networks, lower their rates, and improve their healthcare options so it is important for your agent to keep on top of all of that and report to you at least once a year.
Your agent should return your phone calls and emails promptly. That’s the least they can do.
Your agent should be available to help you enroll new employees.
Your agent should assist your employees with their claims and answer any questions they may have.
Are you happy with the outcomes of the claims you have submitted?
Does your carrier pay what they say they are supposed to pay?
Are your deductibles too high?
Are you in the right plan?
Do you have choices?
How to Pay Less and Get More
I’m going to lay a very simple plan that will help the people who use their health insurance and their employers. It’s a simple idea to lower the out-of-pocket expenses for employees and lower the premium costs to employers. (Back in the day we used to call this a win win.)
There is a program (called an HRA) that allows an employer to set up an account and set aside funds to pay for employee’s health related expenses. (Similar to an HSA but the funds are set aside for and administered by the employer.)
If an employer purchases a less expensive health plan, and sets aside part of the premiums saved into this account, the funds are set aside and can be used by people who use their benefits. The net result is an employer can save money on premiums and employees who use the plan could pay less out of pocket expenses.
How and why does this work? If an employer buys a high-priced plan, one that covers most of the employees’ medical expenses, only about half of them use the coverage. By buying a lower cost plan and investing part of the money saved into the HRA account, they save money and the employees will pay less.
Here are a few of the key benefits of this plan.
- HRAs reimburse employees for certain medical expenses.
- Employers fund HRAs.
- Rules determine which expenses can be reimbursed for employees.
- In addition to qualified medical expenses, funds may also be used to reimburse vision and dental expenses and insurance premiums.
In the world of health insurance, things are changing rapidly. It’s COVID vs technology and people who have health insurance can win if they keep up with the changes, and that is your agent’s job.
If you would like more information about how proper planning can save employers premium expenses and improve the quality of care for employees who use their coverage, please feel to reach out to me. EMAIL ME HERE.
