Group Benefit Programs FAQ
Is self insurance as safe as a fully insured plan?
Yes, when properly designed and funded.
What criteria should you use in recommending a fully insured health insurance carrier?
An employer should evaluate a carrier based on price, provider networks, market share, size and financials.
How does an employer decide the plan benefits it offers for it’s employees?
An employer should integrate the capacity of their labor market, regional and geographic norms, past, current and future cost analysis and financial capability in deciding on a level of benefits to be offered.Yes, when properly designed and funded.
How is life, short-term disability and long-term disability priced?
Group life insurance is priced per 1000.00, Short Term Disability is priced per 10.00 and Long Term Disability is priced per 100.00.
How often should I shop my employee benefit coverages in the marketplace?
An employer should shop their employee benefit programs at least every 2 years. In many cases though some products such as group health insurance may require more frequent trips to the market.
Is individual health insurance as safe as a group plan?
Generally speaking a group health plan will give more consumer protection than an individual plan, in addition in most cases the underwriting is less rigorous under a group plan than an individual plan.
Why has health insurance cost increased so much over the last 10 years?
This is a very complex and divisive issue, but to say the least, carrier and provider consolidation, the advent of new treatment plans, the introduction of new drugs and medical devices and the current litigious environment have all contributed to the current inflationary environment.
Are flexible spending accounts a good idea?
Flexible spending accounts can be a very good idea, they allow employers and employees to maximize current tax law in tailoring the individual reimbursement needs of plan participants.
What do the terms HSA and HRA mean?
HSA’s are Healthcare Savings Accounts and HRA’s are Healthcare Reimbursement Arrangements. Both offer employers and employees new and innovative strategies in trying to control their healthcare expenditures.
Has any new or innovative group health insurance products come to the market ?
Yes, there has been the development of Aggregate Only products focused on employers with 35 to 100 employees, these plans offer employers alternatives to the few traditional fully insured carriers found in most states.
From our Clients & Colleagues
Angela Harris Self-funded Employer
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