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Dave has given you some great advice that I would pay close attention . I live and work in Middle Tn as well.
Jeanie2 says hello
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I guess my point is simply that having spent the first 5 years or so in the "financial services" industry as a captive, I learned that in most captive environments, a lot of critical issues are missed/dismissed due to training, product line or inexperience at some pieces of the puzzle.
Most of the time it is the medical insurance component. Most captives will do a "factfinder" and address it as "do you have health insurance? Yes? Ok". Truth is they may have a bad plan, bad plan design, bad network or a host of other issues. The captive doesn't know because the captive doesn't ask because the captive is not trained how to analyze and sell that benefit.
I hate to see agents miss an important step because their company only sells the x products. This is true of the major carriers like NML, etc. as well.
As to HRA/HSA/Wrap, more and more this is going to become an issue for carriers nationwide. Carriers need controls on employee utilization, and when the employer has a function in place that removes that control, it creates severe overutilization of benefits. Give an employee a plan that requires zero payment for any service by the employee, and guess what? They are going to get all sorts of things done. That is why rates are escalating on HSA group plans (in CA up 35% in one year).
In CA, carriers require the employer to sign a statement prohibiting the employer from providing any reimbursement or wrapping any reimbursement under the HSA deductible. They can, however, fund the HSA for the employee, although most employers won't do that.
Most of the time it is the medical insurance component. Most captives will do a "factfinder" and address it as "do you have health insurance? Yes? Ok". Truth is they may have a bad plan, bad plan design, bad network or a host of other issues. The captive doesn't know because the captive doesn't ask because the captive is not trained how to analyze and sell that benefit.
I hate to see agents miss an important step because their company only sells the x products. This is true of the major carriers like NML, etc. as well.
As to HRA/HSA/Wrap, more and more this is going to become an issue for carriers nationwide. Carriers need controls on employee utilization, and when the employer has a function in place that removes that control, it creates severe overutilization of benefits. Give an employee a plan that requires zero payment for any service by the employee, and guess what? They are going to get all sorts of things done. That is why rates are escalating on HSA group plans (in CA up 35% in one year).
In CA, carriers require the employer to sign a statement prohibiting the employer from providing any reimbursement or wrapping any reimbursement under the HSA deductible. They can, however, fund the HSA for the employee, although most employers won't do that.
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Dave,
In Ca, does this apply to policies the employee purchases personally? Most Aflac policies are sold to the employees without any contribution from the employer. The employer only agrees to take the premiums out of the paycheck, this gives the employee a group rate and sometimes tax advantages.
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This varies by carrier although the overall rule is the same.
Some carriers don't consider Aflac/Colonial/Etc. to be a true "wrap" and therefore will allow it (Anthem Blue Cross allows it). Others do consider it a wrap and prohibit it if the employer is in any way involved, in your example by list billing the premium but not necessarily if the employee has it privately without involvement of the employer.
I know this is a bit vague, however since it depends on the carrier, rules are different.
Some carriers don't consider Aflac/Colonial/Etc. to be a true "wrap" and therefore will allow it (Anthem Blue Cross allows it). Others do consider it a wrap and prohibit it if the employer is in any way involved, in your example by list billing the premium but not necessarily if the employee has it privately without involvement of the employer.
I know this is a bit vague, however since it depends on the carrier, rules are different.
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