Small group quote

[SamIam]

I haven't sold a small group plan in about 11 years. Question since he has to contribute 25% of the premium is that based on the lowest premium plan in the group or if an employee picks a more expensive plan does he have to pay 25% of that premium or would the employee make up the difference.

So if the hmo was $400 but the PPO was $500 would he have to pay 25% on the $500 or could it be based on the HMO

Thanks

 

[rcduggan]

1) in my state 50% is minimum employer contribution. i'd confirm underwriting requirements of the carriers you're looking at for contribution details
2) regarding your contribution split towards plans, yes. i do that all the time. the carrier's master contract do not allow for such complex designs therefore it should be made very clear to the employer, HR, or the admin what is taking place because the premium statements will not reflect these kind of changes. the 125 plan doc should illustrate this as well as good documentation from your proposal illustrating how this is done.