Clark Kent. Bruce Wayne. Annual Enrollment.
You’re probably wondering, “What do these things have in common?” Well, you’d be surprised. Thanks to their near-constant presence in our culture for over 80 years, literally almost anyone can tell you that Clark Kent is Superman, and Bruce Wayne is Batman. By that same token, thanks to the amount of advertising and media attention they receive, almost anyone can tell you that the last quarter of the year is Annual Enrollment for Medicare and Affordable Care Act insurance plans. What you may not know, since it’s not as “in your face,” is that the last quarter of the year is also “renewal season” for the vast majority of employer-sponsored health plans.
It’s no secret that insurance premiums hardly ever go down, and in fact are almost guaranteed to do the opposite. For many employers, over time it becomes a “numbers game” – how much of a hit can we take to the benefits in order to keep the premiums somewhat under control? Since the Affordable Care Act took hold, employers with a younger and healthier workforce can’t even get a good health break anymore, since medical underwriting was taken out of the equation.
In the state of Ohio, there really weren’t fully insured options for employer-based health plans other than the ACA platforms – that is, until now…
The most popular of these are referred to as “association plans” – this is because one of the eligibility requirements is that your business must be a member of the participating association. These plans bring medical underwriting back into the equation, which can serve as the Kryptonite for an employer to get their rates back under control. Here are some quick examples of the savings we’ve seen some employers enjoy from these association plans:
• Scenario 1: a professional membership organization was paying over $12,000 a month for 5 employees and their families. Through one of the association plans, they were able to reduce their costs to just over $4000 a month!
• Scenario 2: an insurance brokerage was paying almost $10,500 a month for 11 employees and their families. Through one of the association plans, they were able to cover 13 of their employees and their families, for around $8500 a month!
• Scenario 3: a pest control service was paying almost $6950 a month for 7 employees and their families. They moved to one of the association plans and were able to pay closer to $4600 a month!
These are just a few examples of the savings that could potentially be out there for employers. Are the savings always going to be this dramatic or are the association plans going to be an answer for everyone? Of course not – but don’t you owe it to your employees to find out if there are different plans that might work for you? We’d be happy to help you find out!