A lot of group plans are receiving their 2016 renewals right now. Many fully-insured carriers renewed their groups early last year to avoid the mandatory penalties that were supposed to kick in on January 1, 2015. As we all know, that requirement was kicked down the road to 2016, so we are seeing a lot of carriers paying out “rebates” based on loss ratio reports and increasing rates significantly because of the mandates.
2016 Renewals are all over the board. We have seen 40% increases for our prospects and because the carriers cannot use claims as an underwriting criteria, many of these 2016 renewals seem unjustified. An employer group with 15-100 employees who may happen to be younger and a lot of single employees may be able to save considerably by looking at Level Funded plan.
Level-Funding is a simplified form of Self-Funding, allowing the employer to have a plan underwritten on the actual risk his company may have. A younger, healthier group has considerable less risk than a company with a high concentration of 50+ aged employees. It is NOT “cherry-picking” for an employer to actually pay for his own plan—it is RISK MANAGEMENT! Employers are using risk management techniques in their liability, commercial and workers’ compensation programs, so it is a good business practice to use these same techniques in the management of their employee benefit plans.
USA Business Choice offers Risk Management services specific to health plans, with predictive modelling, benchmarking and large claim identification programs unique to the small group marketplace. Talk to your broker or give us a call today to get more information.
USA Business Choice “Patriot” was designed exclusively for Smaller Employers and their entry into the Self-Funded world. We have built products for the Small Group market to work with the educated broker.
USA Business Choice: Built for Small Business, Forged by Choice!