Insured hra strategy ppt version sample agency wo logo ppaca version

• How to stay ahead of anticipated increases?

• What to about complying with PPACA

• Is there a strategy that will reduce costs, maintain your current benefit levels… and still prepare for PPACA?

The Cost of Health Insurance

• Do nothing, hope for the best, then dump your employees to the “Exchanges” in 2014

• Implement risky “self funding” schemes hoping your claim costs are low and your monthly cash flow is sufficient ….or….

• Use a new, safe strategy to guarantee savings without risk, maintain benefits… and still comply with PPACA

• The “Insured HRA” Plan

Options for Employer Groups

Combine a High Deductible Major Medical Planwith a INSURED HRA Plan.

The “INSURED” HRA Strategy

Steps

First, Modify current benefit plan to a

“High Deductible” (4-5k) Health Insurance plan. Result: Immediate savings on your annual cost of insurance.

Next, add “FULLY INSURED” HRA coverageThis Supplemental insurance plan covers the increased deductibles and coinsurance.

Keeps out-of-pocket employee expenses same as current plan design-fully PPACA compliant!

MAJOR MEDICAL + INSURED HRA

•Equivalent coverage to current plans

•Same employee out-of-pocket expenses

•Lower annual premium costs

•Comply with PPACA

•Typical annual savings averaging up to $5k per employee!

YOUR SAVINGS!Combined plans cost less with same coverage!

“High Deductible” Plan + INSURED HRA

How It Works

• Employees receive two insurance cards; one for Major Medical Plan and one for INSURED HRA Plan.

• Employees also receive an information card that tells providers how to bill for services whenever they receive medical attention.

• If the service is covered by Major Medical but is subject to the new high deductible, employees bill will be paid by the INSURED HRA plan.

Similar “GAP” Strategies

• Medicare + “Medigap” Supplemental Plans

• IBM vs McIntosh-”Component” Based PCs

• Supplemental Dental and Vision Coverage

Sample Case – Employment Services

Census Status Medical Total

58 Employee $471.11 $471.11

23 2 Person $1,130.67 $1,130.67

10 Family $1,366.19 $1,366.19

91 $66,991.69

Current Plan: BCBS CB4 $500 DD / 20% to $1500

Census Status Medical Total

58 Employee $494.39 $494.39

23 2 Person $1,186.55 $1,186.55

10 Family $1,483.18 $1,483.18

91 $70,797.07

Renewal Plan: BCBS CB4 $500 DD / 20% to $1500

Census Status Medical Insured HRA Total

58 Employee $320.36 $93.47 $413.83

23 2 Person $768.88 $175.01 $943.89

10 Family $961.09 $248.01 $1,209.10

91 $57,802.61

Proposed Plan: BCBS CB15 & Insured HRA to $500 Deductible / 20% to $1,500

Proposed Plan: Annual Savings Versus Renewal Plan $155,933.52This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not

intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

Sample Case – Consultant Firm

Census Status Medical Total

15 Employee $332.28 $332.28

5 2 Person $747.63 $747.63

9 Family $897.15 $897.15

29 $16,796.70

Current Plan: Health Plus $500 DD / 20% to $1500

Census Status Medical Total

15 Employee $395.08 $395.08

5 2 Person $888.93 $888.93

9 Family $1,066.71 $1,066.71

29 $19,971.24

Renewal Plan: Health Plus $500 DD / 20% to $1500

Census Status Medical Insured HRA Total

15 Employee $220.52 $84.67 $305.19

5 2 Person $518.22 $159.87 $678.09

9 Family $595.40 $225.54 $820.94

29 $15,356.76

Proposed Plan: McLaren POS & Insured HRA to $500 Deductible / 20% to $1,000

Proposed Plan: Annual Savings Versus Renewal Plan $55,373.76This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not

intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

Sample Case - Auto Dealership

Census Status Medical Total

95 Employee $364.40 $364.40

42 2 Person $619.49 $619.49

96 Family $759.39 $759.39

233 $133,538.02

Current Plan: Priority Health $1,000 Deductible / 20% to $2,500

Census Status Medical Total

95 Employee $435.47 $435.47

42 2 Person $740.30 $740.30

96 Family $907.48 $907.48

233 $159,580.33

Renewal Plan: Priority Health $1,000 Deductible / 20% to $2,500

Census Status Medical Insured HRA Total

95 Employee $198.28 $47.29 $245.57

42 2 Person $475.88 $85.13 $561.01

96 Family $594.86 $119.97 $714.83

233 $115,515.25

Proposed Plan: BCBSM SB 4000 and Insured HRA $1,000 Deductible / 20% to 2,500

Proposed Plan: Annual Savings Versus Renewal Plan $528,780.96This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not

intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

Sample Case – Public School District

This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to

indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and

savings will vary by group. Contact your agent for a quote and savings illustration

How much can we save youand still comply with PPACA?

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