Need Advise For Small Business Owner

[Insuranceman]

I'm trying to help out small business owner who can no longer afford his group plan in Ohio. Their are 6 families in his group 4 have health conditions that prevent them from getting individual plans. I got some group quotes from some other carriers all max rated the group. I'm not sure if he has any other options. Any suggestions would be appreciated.

 

[leevena]

Re: Need Advise

High deductible health plans to lower the base cost is the only way you will get the group plan to have a lower premium, assuming you have not done this yet. Otherwise, out of luck with group.

You can always augment these High Deductible plans with some sort of hospital indemnity (AFLAC) type plan.

 

[Guest]

Re: Need Advise

High deductible health plans to lower the base cost is the only way you will get the group plan to have a lower premium, assuming you have not done this yet. Otherwise, out of luck with group.

You can always augment these High Deductible plans with some sort of hospital indemnity (AFLAC) type plan.

What you say is true and good adviCe!

 

[arnguy]

Re: Need Advise

Maybe he meant to title the thread "Need to Advise."

 

[Sales71]

Re: Need Advise

U did it all.

 

[Ann H]

Re: Need Advise

I'm trying to help out small business owner who can no longer afford his group plan in Ohio. Their are 6 families in his group 4 have health conditions that prevent them from getting individual plans. I got some group quotes from some other carriers all max rated the group. I'm not sure if he has any other options. Any suggestions would be appreciated.

Yes, definitely take a look at high deductible health plans, and consider the tax savings that comes with an HSA account.

I'm doing the same thing right now for a group client, and a 70% plan had attractive numbers as compared to 80% plans since the max out-of-pocket is the same. Sometimes you can get a 60% or even 50% plan, and if the out-of-pocket maximum is acceptable why not take it? It makes no difference in the small claim or large claim. The small claim is copay driven, and in the large claim you meet the deductible and out-of-pocket max anyway. Why would one care if it was paid at 90%, 80% or 70% if you end up paying the same dollar amount of deductible and out-of-pocket max? Only in the case of the medium claim would one care - a claim that was subject to deductible and co-insurance percentage but didn't completely satisfy it.

Most carriers have new "value" plans that limit the Dr. visit copay to 3 times per year, then Dr. visits are subject to deductible and co-insurance percentage. Those plans are terrible in most cases, but in a case where the members reach the deductible anyway, it's a good idea.

I always think HSA's are the best idea, though.

Take the opportunity to talk to this group about group disability and life insurance. In our state we can get guaranteed or simplified issue policies. If members are sick, they may really appreciate it when you bring this to the table, especially since the premiums are very low. If there are only 6 employees, then the business owner may appreciate having a disability plan in place that is an alternative to "hey Boss, I can't work but need a paycheck, can I have an advance..." When they really see the low premiums, the incredible benefits, and its match to their staff that has medical conditions it can be a good cross sale. Usually the LTD has a pre-ex wait, but the STD does not.

Good luck!

 

[Sales71]

Re: Need Advise

i do not like hsa they cost more than other plan..not care much about the tax savings its all smoke..

 

[AllGold]

Re: Need Advise

i do not like hsa they cost more than other plan..not care much about the tax savings its all smoke..

That is a recent development. HSAs used to be cheaper than copay plans in almost all cases but HSA premiums have really gone up a lot over the past year or so.

The risk on an HSA is still lower and if the price is anywhere close then an HSA is a better value.

 

[InsureMonkeyQA]

Re: Need Advise

That is a recent development. HSAs used to be cheaper than copay plans in almost all cases but HSA premiums have really gone up a lot over the past year or so.

The risk on an HSA is still lower and if the price is anywhere close then an HSA is a better value.

Yeah when you read articles on 'how to save...' they usually suggest taking a look into HSAs, which is worth looking into, but now that HSAs have gone up it's really a question on how much you can save with all tax exempt funds vs. copay plans.

 

[Sales71]

Re: Need Advise

My hsa with blue cross went up to 350 a month. Changed that plan and now I pay 120.