Health insurance plans that pay you back.
Are you overpaying for your business health insurance benefits?
With fully insured health plans, all of your premium is paid to the insurance company. You do not have control over how that money is spent and you won't see any of those premium dollars again, even in years when your group's claims are less than expected.
Our Self-Funded Programs are different. Some of your monthly premium is used to run the daily administration of your plan, but portions of it are also used to pay your stop-loss insurance premium and to build your claims funding account.
In years when claims are lower than expected, a portion of the difference between your group's anticipated and actual claims funding account are credited back to you and that adds up to significant savings.
Return of premium self-funded health insurance programs. Your premiums are split into three categories:
● Plan Administration
● Stop-loss insurance
● Your claims funding account
Receive MONEY back from your claims funding account when your claims are lower than expected.
In this example, the employer receives a $36,000 cash refund at the end of the plan year.
Annual Claims Pre-Funding. $200,000
Paid Claims: ($160,000)
Terminal Liability Reserve Fund*: ($4,000)
Difference: $36,000
100% cash refund: $36,000
IN YOUR POCKET
This examples is for illustrative purposes only. The actual numbers will vary by group. *The terminal liability reserve fund is an amount that is estimated based on the group’s experience and is set aside to pay claims up to a 15-month run-out period.
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