What are some good GROUP Health Strategies for 50 and under employers?

[AOKING]

Need some help here......I have an employer that is contemplating putting in group health......(employees have been asking for it). The problem is, most employees are not earning very much income. Most likely only 4 of the 34 are earning 70k or more. Most are around $10 an hour.

What are some possible solutions? HRA?

Thanks,
AO

 

[BADTROUT]

We've been seeing some good rates from National General on Group... but still even at 50% contribution offering the plan is going to complicate their ability to get subsidies if they don't want to get on the group plan. Insurancewise i dunno of anything cheap enough to offer. Here locally we have monthly subscription primary care clinics ($79 a month for the family) and they work well, but not sure if you have anything like that there... May be worth looking into.

 

[gregj]

By your own description, group health coverage doesn't really fit this group right now

why not find someone who can do a good analysis of typical premium tax credit eligiblity for employees, figure a way for employer to help with the balance (some kind of HRA arrangement?), maybe sprinkle some voluntary and/or supported benefits options in the mix - maybe something like what BTrout suggested - and call it a benefits implementation job well done?

 

[somarco]

My advice is to move on and find a REAL prospect.

 

[gregj]

My advice is to move on and find a REAL prospect.

hmm....where I come from, a 50+ employee group is a real prospect most any day of the week...there are fewer of them than you may think

 

[somarco]

hmm....where I come from, a 50+ employee group is a real prospect most any day of the week...there are fewer of them than you may think

This "group" is less than 50.

A virgin group with 4 high income earners and 34 minimum wage types. Strike 1.

Also, based on where the OP (and presumably the "group") is located, BX is the dominant carrier and I don't believe they allow brokers. That would be strike 2.

You obviously have more time on your hands than most of us.

Go for it.

 

[yorkriver1]

Ancillary benefits, good option. Employees love the cash reimbursement plans once a co-worker has a claim. Tax credits not necessarily viable for the long haul--so future in whatever is next. If not knowing how to work with tax credit eligible individuals, partner with someone who can, or just send them to the state/federal website.

 

[leevena]

From an arms length perspective, I agree with Somarco, this 34 life group can be a time suck. The one piece of missing information, and it is the most important, is what is the employer budgeted amount. If I am talking with this group the very first question I would ask.

 

[scagnt83]

A prospect is someone who is a suitable candidate for that product. This business is not a suitable candidate for a group.

1. It will be cheaper for employees to get subsidies on the exchange.

2. Most employers with businesses like this (lots of low wage hourly) seldom are willing to pay the huge premiums that go along with group health.

Is he prepared for a 50% increase in payroll??? (he must make it affordable enough under ACA guidelines)

3. Low wage hourly employees are a HUGE PIA on group health. They also have higher turnover from a statistical standpoint. Thats not good for the agent, not good for premiums, not good for the carrier.


I wouldnt touch a group like this with a 10 foot pole. My time is way too valuable.

 

[scagnt83]

But here is what you could pitch instead of group health:

- Employer paid "health care" bonus, paid in an equal amount to all employees.

There cant be any stipulations on it, its a true cash bonus. But the employer can tell employees "the purpose of this is to help with "health care related expenses", but you are free to use it however you please".

Employees could put the money into a HSA, use it to pay Premiums, or use it for a new iPhone. But employees see the employer "doing something" to help them with insurance.


- Then you pitch supplemental insurance to help "fill in the gaps".
Dental
Vision
Disability
Life
Critical Illness
Cancer

The employer could pick up the Dental/Vision for pretty cheap. Same with the Life.

Now employees have "free" dental/vision/life. Plus a new bonus to help pay deductibles.... or a new DI or CI policy



Groups like the one you described, are big fans of set-ups like this. The owner saves money and saves time, so they are happy. Employees get extra insurance benefits and extra financial help, so they are happy. You make a sale and dont waste your time, so you are happy.

Plus, group premiums will scare the living sh*t out of $10/h employees!! Once the employer shows them the rates, they will be in love with their subsidized exchange plans.

Right now they dont know what they dont know.