New to Health & Benefits

[Midwest Kev]

I have a ~300+ employee business that really would like for me to write their group health plan and employee benefits packages. They also want us to administer their 401(k). I am coming from the captive world where I could not do that. Where would I go to get started writing these types of products for them? Do I need to seek out an FMO/IMO to help get it done? Pointing me in the correct direction would be awesome!

Thanks,
Kevin

 

[Ryan Matthison]

Hey Kevin- I'm a CFO for a 335 employee business, with employees located in 9 different states. We worked with Luminescent Benefits (goluminescent.com) which is a free service. They went out and introduced us to a few options. We looked at Employee Benefits + HR service from a few different brokers and also a couple of PEO options. I'd highly recommend chatting with Luminescent, as we saved nearly $350k by them driving price competition on our behalf.

 

[Ryan Matthison]

https://www.goluminescent.com/blog/...offering-employee-benefits-five-key-questions

 

[Ryan Matthison]

I found that blog above to be pretty helpful.

 

[mudhound]

Find a good group agency in your area and co-open the group. Each one you do will get more easy.

 

[Ryan Matthison]

Good looks. Thank you!

 

[junkman]

https://www.goluminescent.com/blog/...offering-employee-benefits-five-key-questions

Nothing in insurance is "free". They are an agency, nothing more. They would be potential competitors with the OP unless he had a written agreement with them. The carriers are paying normal commissions and over rides/bonuses based on agency volume. It's good you got good service but you want to find a specific agent who is honest and competent to handle your business. Developing a relationship with the owner may suffice or not. It depends (on competency and honesty).

Any competent agent(cy) should be able to drive price competition if there is any available. Your medical premium would be driven by your claims experience. Any carrier or TPA would be looking at the same data. The premium difference would be determined by network and plan design - not a difference in price for the same benefits.

I remember a 800 member case that Blue Cross said was 100% credible. My calculations based on 2 years of claims data said it was less than 35% credible. Credible means that expected claims had a % probability of following a regression trend line. Even at a rolling 2 year regression, credibility only reached 65%. I note that BC's block will track close to 100% if they charge all of their groups as if they were credible. You have to look at least Std Dev and R2 to know who's blowing smoke.

I wonder where your $350,000 came from and what % of total premium it is.