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Are you health insurance leaves money on the table? . . Top 10 money wasters for Group Health Insurance Benefits
As an employer or a member who could leave money on the table by not taking good advantage of certain features benefits and health insurance from his company. As a consultant licensed and benefits Exchange Group company, with clients across the country, we succeed in reducing the costs of group profit because of our experience and intimate knowledge of the factors used to determine prices. This Top 10 list should be helpful in increasing their knowledge of insurance, maximizing your benefits plan and, possibly, reduce your business expenses.
Background and overview:
For most companies, insurance collective, including medical benefits, producers are among the highest expenses. Unlike other expenses, benefits The doctors who come home, because it affects our employees and our families personally. Therefore, it is extremely important that the CFO and Director of Human Resources taking into consideration the needs of its employees, the needs of families of their employees, pricing and the specific benefits offered.
The capacity of a representative or employee of the family of an employee to use a favorite doctor, as a pediatrician or an obstetrician-gynecologist is often affected by this decision. The ability of employees and their families using specialized treatment centers in the case of a situation catastrophic medical encompasses the balance of Decision Health Benefits. The quality and access to health care varies from insurance company to insurance companies.
Endowment staffing and retention:
The main objective Group benefits all in respect of employers to attract and retain employees. Strike that benefits the wider it would be easier to attract and retain a workforce of high quality.
As reciprocity, industries that use high turnover jobs with minimum wage employees can not necessarily choose to use insurance policies for higher quality attract and retain employees. Pools of employees may be abundant, and the total cost baseline may be more important than the quality and level of care offered.
That said, we want to share with you some ideas to save money and underutilized features of their services health. Note that some items may be related to their current coverage, while others suggest a change in coverage or a change in characteristics of their plans.
What follows is our list of top 10 mistakes are often called Group Health Insurance. This list is In no particular order. Each item may or may not apply to your current situation.
Top 10 Health Benefits of errors:
1. Not cover the medical problems early
To use a cliché, "a stitch in time saves nine" or "prevention is the best medicine", or "kill the monster, though small." Not sure if this is a common cliche, but stressed the point that prevention is often the best medicine. Early detection is the second best treatment plan. Many doctors say colon cancer is very treatable if detected early. If cancer is detected early there is a risk of cancer more aggressive and spreads throughout the body. Everyone should take time for regular reviews. Each person must be aware of key medical indicators such as weight, blood pressure and cholesterol. When a person reaches a certain age recommended mammograms and screening of other expected regularly. Simply because I never went to check cholesterol does not mean that your cholesterol is zero. It is stupid as they are mobilized in a car without a fuel gauge and assuming that there is no need to put gas in it because there no indication of the level. The number of lives saved by early detection could be his own or someone you love.
According the size of your group and establish your business in the early detection means less allowances Large insurance companies which results in lower premiums for your business.
2. Do not use the "value added benefits"
Many times, when you think about medical benefits who think only of physician visits and drug plans. Often, employers and employees do not realize that your insurance company may also include services called "value-added benefits.
Health insurance companies offer these value added services to promote healthy lifestyles. Maintaining the lifestyle of employees in health insurance claims would be down.
Is important to understand their value-added benefits for several reasons. First, his family and employees can benefit from the work these services. Second, its management or human resources department might look like heroes to their employees about these benefits value. The benefits are already covered by what may as well tell people about them.
Examples to evaluate the additional benefits include:
a. Vision – Some carriers have pre-negotiated discounts for vision care to including eye exams and glasses.
b. Nutrition and supplementation – Some companies offer discounts or rebates supplements nutrition. Supplementation might keep more employees healthy and prevent certain diseases. Some employees are often already pay out of pocket for supplements so that discounts are bottom-line savings for the employee.
c. Stop smoking – Employees May be entitled to discounts on programs that relate to quit. Without going into a conference discussed the dangers of smoking, said that when an employee is ready to quit, is more easily done with the help of professional programs. In the case of the Directorate General of Health is right on dangers of smoking, healthy employees are happier and more reliable as an employee. This could also avoid visiting the hospital disaster and future treatments and delaying their premature death.
d. Weight Management – Employees can take advantage of programs weight control. In some cases, employees may already be familiar with using programs such as Weight Watchers or Jenny Craig ™ ™. Many medical scientific studies directly related to diseases and health risks to the weight of an individual. Once again, a healthy employee back in sick less often is more productive, and a selfish side, is likely to minimize the number of complaints against their insurance policy. Some sizes companies in some states may be classified and premiums are charged based on claims filed against the insurance company.
e. Gym Membership – Discounts and rebates may be available for health club members.
f. Hearing – May Some schools have the hearing before the discounts negotiated with your insurance company.
g. Bicycle Helmets – A safety equipment such as bicycle helmets may be available at a discount with specific insurance companies and retailers. Some States require that children under a certain age are required to wear a helmet when cycling, skateboarding or rollerblading. Even if the helmet is not compulsory, Alarmingly, the number of serious injuries could be avoided with a good head protection. If you need or want a helmet anyway you can also get a discount on it.
h. Discounts Stores – Other retailers may have a pre-market incentives worked with your insurance company, as stores items for baby and home. It's a good thing for the warehouse a marketing and is looking good for the consumer to get a discount.
I. Security Improvements – On my companies Security to provide discount services for their protection, home and security additions.
j. Stress Management and Alcohol – Different services can exist for stress management and alcohol rehabilitation programs and treatment.
k. Mail Order Discounts – Some companies offer additional discounts for orders by mail. This is particularly useful for prescription drugs for the long term, such that medicine heart or cholesterol. You know you need a different way so you might as well stock by mail.
3. Do not get a Second Opinion:
Different insurance professionals have experience and skills different. Some riders are just runners, while others are licensed security consultant. Some brokers specialize in general insurance or life insurance, while others specialize in Group Health. If you are related to their rate of Medicare and services, perhaps a professional is what your business really needs.
Speaking as a professional insurance, that all people, respect and appreciate customer loyalty based on past service and existing relationships. On the other hand, knows how politics really is the most appropriate and functionality if you do not get a second opinion from a broker or a different consultant? If your relationship with your agent is solid, not be difficult for the corridor to keep your business. If the skills of your broker is not updated and acute refers his company, his satisfaction could cost his company tens of thousands, if not hundreds of thousands of dollars.
Often, a professional insurance could become complacent with existing customers. This may be due to the increased workload, staff shortages, or because they are too busy seeking new customers. We can not focus on results.
A second opinion brought a new perspective on the needs of their health insurance and options. Guard your broker honest and said they need to continue the service and provide creative solutions to retain their business.
Sure that transport alternatives are "the same kind and quality." It only means that are apples to apples comparison.
Mix it a little. Find out what the increase (or decrease) premiums can be if you increase (or decrease) the co-payments, deductibles, deductibles network and coinsurance. Discuss options with the anti-drug plan.
Sometimes it pays to ensure a free hand to reduce premiums. Look at the total exposure Determine your agent worst scenarios, and consider the likelihood that the scenario could become reality. This fits with errors # 4 # 5 and # 6 is.
4. Without looking at the overall picture of total costs
Very often, companies do account monthly premiums related to their health coverage. This is not the only variable with regard to Insurance Rates. It is important to look the total picture, including:
a. Co-insurance
b. Within the network and outside of the Franchise Network
c. In network within and outside the Network Co-Insurance Levels
d. Within the network and outside network sundries
e. Reimbursement levels Out-Of-Red reasonable and customary
f. Country / No Country
g. Drug co-payments coverage, deductibles and coinsurance
h. Disease and Wellness Program
i. Employer / Employee Contributions
j. Web Accessibility
k. Disruption analysis
l. Monthly Premium
m. Maximum Exposure
n. The maximum benefit
o. The tax treatment (see No. 9)
p. Quality of coverage
l. Franchises introduced drugs
m. Generics and no rebate form drugs
Each of these can be a story itself. We offer a free consultation to find coverage and suggest ways to maximize efficiencies and improvements. Please see "About the Author" at the bottom of this article for details.
Pay 100% of employees
If you pay 100%, by law, employees can not "abandon" insurance plan. Participation must be 100%. paying less than 100% of benefits are able to "register". This gives flexibility.
What is the problem of having to take the benefits if you pay for everything? The fact is that some employees may not use the insurance of a spouse if they had to use yours. The spouse could provide better coverage with more choice and better quality doctors.
Really have to pay insurance for everyone if they do not want insurance or prefer to forgo coverage and follow the plan of your spouse? This means pay higher costs for something that probably never used by some people.
5. Not listed as size group to the right (or perhaps a different size otherwise) is the common property?
Depending on your situation, as the state in which they do business, you may or may not enjoy the status of a small group or large group. Customers simply classify the size of the most appropriate saved us thousands of dollars for clients.
In general, small groups are seen as groups that are estimated between 2 and 50 employees eligible full-time and large groups are seen as groups consisting of 51 + employees eligible full-time. An employee eligible for full time is not the same as the employee may be eligible for incentives. For example, one group may have 55 employees, with 40 employees on the plan group health, and be classified as a large group.
Depending on your employee population that could be advantageous or disadvantageous to be considered as a group size of 2-50. Read # 6 of this list for more information.
It is the common property?
In some situations, some companies have common ownership with other companies. Depending on turnout, in some cases, it is advisable to ensure the separate businesses, while in other cases, it could pay employees to combine and consider it a group more important.
6. Without knowing your employee population or offering different plans
Similar to No. 5 in the classification of the group size, the money can be saved by having a comprehensive understanding of the demographics of your group. Generally, young people are healthier and can afford to have some medical risks older workers can not afford to take. If you notice that your company is made up mainly of young people who are healthy can be a good idea to use a map of high tax deduction with a medical savings account described (HSA). A high deductible plan essentially bet on the fact that the claims will be minimal throughout the year so why not pay the lowest premiums, and at the same time, earn cash in the medical savings account (HSA)?
A high deductible plan does not necessarily mean that you intend to spend on deductibles for employees. Your company may be willing to pay part (or deductible) by a health care reimbursement account (HRA).
Do not offer different plans for different people
More recently the market has been a trend towards companies offering multiple options for insurance plans. The company can provide contributions based on employees to choose between "basic", "buy-up" or "an HSA plan.
In addition, companies can offer a plan based on employee classification. For example, "Category 1", the employees may consist of executives and managers and "Class 2" employee may include all others.
7. Do not compare your coverage to his companions:
The trick is to be competitive without knowing the store. Normally, to generalize for a moment, law firms can provide the best insurance for the money while the workers the assembly line could be profitable manufacturing average. But what is mean and how to know what is standard and custom?
A comparative analysis is a report that can be asked to compile statistics on trends in comparable companies in its industry, firm size, and / or in their region. Although these reports often cost a little money, information could be useful to attract and retain qualified employees; without disclosing all the benefits.
8. Blindly automatic renewal
Even if you like your broker is a mistake do not treat each renewal period as an opportunity to know what companies or other insurance policies are competitive and appropriate for your business. Each renewal period shall be treated as they are seeking insurance for the first time.
With our customers, This step is invisible to them. We are still waiting for the numbers and compare renewal with other companies or with other policies within the same airline. Over the years it became clear that the only constant in life is change. About the basis of the insurance company want to increase or decrease market share, often an option to increase or decrease your risk tolerance and policies. A renewal period is an excellent opportunity ensure they have adequate coverage for their situation.
9. Do not use the correct tax treatment for Your Business
While we find these waste "special money are often not an accounting firm and suggest who speaks your tax advisor, accountant, or CPA before doing anything.
Before-tax or after-tax dollars:
Typically speaking, premiums for health insurance are tax deductible with pretax dollars, while co-payments, deductibles, coinsurance, and co-payments for prescription are generally paid with after-tax dollars. Could be a good idea of your accountant to work with your broker to obtain a tax strategy that works well with human resources and objectives of health benefits.
Tax Treatment employees
Are employees to pay their share of health insurance premium by using a "Section 125" single plan premium? This will allow employees to pay health insurance premiums on a pretax basis reduces payroll of the employer.
You may want to consider offering flexible savings (FSA). An FSA allows employees to pay part of their non-reimbursed expenses medical on a non-taxable.
10. Lose money because of mismanagement.
We hear almost every day. Because of mismanagement, neglect to advise employers to insurance companies for new or recently completed employee eligible.
In many cases, the guidelines are rigid and clear. A simple mistake can cause the management of your insurance company to pay someone no longer with the company or may be open to liability. He was an employee eligible for benefits, but someone forgot to do paperwork, your company could be liable for any claim.
Responsibility for failure not fixed disclaimers
Notices must be submitted in May due to changes in coverage or policy changes. Again, in many cases the burden of proof could be you. If you do not notify employees of changes that could be held responsible for the lack of notification.
COBRA Notifications
Last but not least, in many circumstances, an employee has the right to be notified if they qualify to participate in the insurance program after the end of Cobra. Cobra is the Consolidated Omnibus Budget Reconciliation. This gives employees the right to continue insurance illness given certain qualifications. By failing to communicate properly employed, your company is in violation of federal law and may be liable claims and medical expenses incurred by the employee. When employees of the notification as appropriate, the responsibility rests with the employee and the insurance company if they decide to continue coverage.
So what is your next step?
It is good he has done so far in the article and that in itself gives a lot of things to do when deciding if they are all previous errors. In some cases, you can change your behavior halfway. For example, you can check with your current provider, if there is no value added advantage that may not be considered. You can also make sure that your company has an accurate list of employees which should be in politics or the need to add.
Once again, the group health insurance is one of the largest producers expenditure is not for most companies. The accounts of companies and their employees and to maintain an active role in the welfare of routine tests, programs and disease management. Insurance could be considered an expense, but when it comes to this, health and life are in danger.
Disclaimer: The information is intended as a general. Always consult a licensed professional before applying anything.
Copyright © 2008 Economic Evaluation Group, Inc.
ABOUT THE AUTHOR:
John R. Klimchak has been in the insurance field for over 20 years. He is a consultant and insurance broker authorized. Mr. Klimchak is also the Chairman of the Evaluation Group economic, Inc. (www.eegroup.com), a company that specializes in providing group health and related services. For a free consultation call (516) 338-2800 and refer to the "Top 10 mistakes in the article.
About the Author
John R. Klimchak has been in the insurance field for over 20 years. He is a licensed Insurance Consultant and a Licensed Insurance Broker. Mr. Klimchak is also the President of Economic Evaluation Group, Inc. www.eegroup.com , a firm specializing in Group Health benefits and other related services. For a free consultation call (516) 338-2800 and reference the “Top 10 Mistakes Article”.
Can I cancel my health insurance without an event of "rating"?
I want to cancel my health insurance your employer-sponsored by the fact that we learned that we still receive health insurance benefits through the military. I did not know this was still active when I signed up for insurance through my employer. My employer is saying he can not cancel because there is no "qualifying event" to justify the change. How can force me to continue to carry coverage do not need? The military plan we have is to pay 100% because we have already met the deductible, so I honestly do not need additional coverage. Is there any way around this? Our benefits person says that it is up to ERISA guidelines. Any advice or help on this?
What your employer is saying is correct. You can only add or remove employer-sponsored health insurance during open enrollment or when you have an "event of grade. "This is because federal regulations on benefit plans before taxes. Your employer is not the rule – not the IRS, as part of the rule allowing premiums from income before taxes. Nothing you can do about it, do not quit your job or reduce their hours to the point where they are no longer eligible for coverage health insurance. Sorry. Decisions made in applying for open enrollment throughout the benefit year, and the only exception is when there is a qualifying event.
