Reducing Health Insurance cost for the small business!

By: Mark Herschlag

Have you been renewing your health insurance policy year after year with the same old policies with a typical increase?

Business owners with 2-50 employees- there are lots of new options that are changing quarterly. Savings for you and your employees!

What is available for you today?

For starters, there are your traditional options from popular insurers such as Oxford, Horizon, Ameri-Health, Aetna and Health Republic, each of whom offers unique small business plans.

The most popular new features of 2016

*Oxford introduced a new program that will cover the garden state only, saving 30% on the premiums.

*Horizon launched the new Omnia plan. This breaks down the network into 2 tiers as long as you stay in your tier 1 you’ll be sure to have the lowest out of pocket expense. “We have had great experience finding the most doctors in the tier 1 network”

*Aetna rolled out the new HSA plan that offers one max out of pocket expense for the entire family. Saving on your premium and out of pocket as well!

*All plans through Health Republic offer nationwide coverage. Making them #1 competitor in Nationwide plans.

One major benefit that the group insurance market has over the individual insurance market is enrollees are not bound to their plan choice for the year. You are permitted to make plan changes throughout the year in the event that a particular need arises. A professional broker can guide you through the process.

 

Let’s Talk PEO

What is PEO?  PEO is an acronym for a Professional Employer Organization. As Trusted business partners for small and medium size employers, Peo’s deliver cost-effective, outsourced services for health benefit administration. PEO Extensis provider knows you need Fortune 500-level benefits to win top talent in a competitive marketplace. And, you want cost-effective, flexible benefits that fit into your business plans.

Some of best healthcare plan options in the industry, tailored to the local markets of NY, NJ, and PA, with national market options for out-of-area-employees. Our plan recommendations factor in your industry and workforce, too. You can expect: 

  • 40+ plan designs to select from 
  • ACA-compliant plans that meet Minimum Essential Coverage requirements
  • Coverage provided by Aetna, one of the largest national healthcare carriers serving more than 14.6 million workers in all 50 states 

Let’s Get Creative

Popular on the market for its superior rates, terms and refundable premiums are Self-funding plans. 

Self-funding plans are administered by the insurer, as with conventional plans, with similar copays, billings, and reimbursements. The only real difference is that the rates and terms are  superior. 

The self-funded plans pool all employees regardless of age. The premium rate is determined by averaging out the entire group. Therefore it is most popular amongst small businesses employing the young and healthy. This plan works well for a group of 6+ enrolled employees.

Waiting to hear about the refundable premiums?

Based on my experience, the most “oohs” and “ahhs” I hear when discussing self-funding revolve around their refunded premiums. People are skeptical that an insurer would actually return money that they paid out to them (other than in the form of medical benefits). Self-funded plans actually do just that!

At year’s end, the insurer assesses the amount it spent on the total claims for each group over the year. If the total spent is less than the total that the group contributed to the claims fund, the insurer returns the difference to the group. The claims fund represents the largest portion of where premiums typically go to. So, generally speaking, the amount that is potentially refundable is well over one-third of the total premium. Statistically, over 50% of enrollees in these plans get some of their premiums refunded each year.

What plan is best for me?

As a New Jersey based professional insurance agent, I spent an inestimable amount of time studying every nook and cranny of the options discussed amongst many other available plans. I have also learned a lot during all the time I spent discussing options with owners of New Jersey businesses of all sizes and industries over the past years.

I can tell you that there is no one-size-fits-all answer. Every business, and every group of employees, needs their own unique plan. You need to know the fine print of every plan to understand the differences, advantages and disadvantages of each one. Only then can you efficiently choose a plan that’s best for you and your business.

 It is very satisfying for me to utilize my knowledge and experience to help businesses and individuals make a smart and educated choice for their health insurance – one that they’ll ultimately be happy with for the long term. I’m always on the front lines looking at the new options on the market, studying them, and then offering them to suitable clients.

The more knowledge, the more choices, the better.

I look forward to discussing your options with you.

Mark Herschlag is the founder and CEO of Cosmo Insurance Agency, which is based in Ocean County. Cosmo Insurance Agency offers personalized solutions for individuals and businesses looking to obtain health, life, dental, long term care or disability insurance.   

For more information or for a free, no-obligation quote, please call (201) 817-1388 or email info@cosmoins.com.

 

 

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