Since the onset of the Affordable Care Act, many thriving companies have seen their group health rates soar to unexpected and unaffordable levels. By subjecting groups to community ratings, fixed premium increases and other ACA-related stipulations, a concerning number of businesses are now paying far more than they presumably should be for employee health coverage.
This has forced many to look for innovative ways to lower their group health rates, while never compromising coverage for their employees. Alternative-funded health plans provide one of the most economical and effective ways to accomplish this, while serving as a viable option for businesses of practically every size and industry.
Consider the many advantages of alternative and self-funded group health plans:
Bypass Community Ratings
One of the main reasons so many businesses are experiencing rate hikes, is because they are now (unfairly) lumped together with other businesses in the area, and subject to what's known as community ratings. This means that the rates of healthy and younger groups are essentially being determined by the health and claim history of those who work for similar companies in their geographic region. Alternative-funded groups are exempt from community ratings, allowing them to pay more realistic group rates based on actual claims and health needs.
Increased Flexibility & Plan Design
In addition to setting up plans that provide need-based coverage within specific hospital and physician's networks, alternative-funded plans can be uniquely tailored to meet the realistic health concerns of your staff and management. This means determining how much you will contribute towards each employee's monthly premiums, as well as configuring specific deductibles, copays and max out-of-pocket expenses. Ultimately, these plans are designed to promote a healthier workforce while attracting and retaining healthier employees.
Significant Reduction in Premiums
Under traditional group plans, many businesses have experienced increases upwards of 20% annually. This is outrageous, especially for healthier groups who submit fewer claims and take on less risk. With alternative-funded plans, claims are essentially treated as expenses, or variables, and addressed on a monthly basis as needed. Considering that 20% of employees typically account for 80% of all health claims, this option allows you to pay for only the services used.
Alternative-funded Health Plans for IL Businesses
You may be wondering if an alternative group plan is right for your company. At Premier, we would like the opportunity to help you find out for sure. We offer free consultations and group benchmark assessments, to assist you in determining which type of plan is ideal for your business. Call us at 800-369-0287 to schedule an appointment at your office or ours, and start making the most of your healthcare dollars.