Solutions are very hard to come by these days. I feel like I'm just guessing out here sometimes. The group side feels like a try this and see if it works world to me.
Leevena, do you have a plan to get these biz ready for this impact? Any idea on how to estimate cost besides just multiplying the current rate (if they have a small group, such as management)? I understand that with no claims info wellness is hard. But can't offering an incentive to employees to quit smoking, or loose weight only help?
Using the outline I provided above, I would start with an estimate of the fully insured per head cost. I would then begin to estimate what the actual risk of the group is relative to the fully insured, meaning if I beleive this risk is better than the community pool by 10%, I would peg the self-funded at 90% of the fully insured. This is not perfect, but it will start to get you to numbers that the employer could understand.
Your suggestion of incentives would have minimal to no effect.
