Saving Employee Benefit Programs afterNational Health Reform

The “Insured HRA” Plan

• How to stay ahead of anticipated increases?

• What to about complying with PPACA• Is there a strategy that will reduce costs,

maintain your current benefit levels… and still prepare for PPACA?

The Cost of Health Insurance

• Do nothing, hope for the best, then dump your employees to the “Exchanges” in 2014

• Implement risky “self funding” schemes hoping your claim costs are low and your monthly cash flow is sufficient ….or….

• Use a new, safe strategy to guarantee savings without risk, maintain benefits… and still comply with PPACA

• The “Insured HRA” Plan

Options for Employer Groups

High

Deductible

Plan

INSURED

HRA

Combine a High Deductible Major Medical Planwith a INSURED HRA Plan.

The “INSURED” HRA Strategy

Steps

First, Modify current benefit plan to a “High Deductible” (4-5k) Health Insurance plan.

Result: Immediate savings on your annual cost of insurance.

Next, add “FULLY INSURED” HRA coverageThis Supplemental insurance plan covers the increased deductibles and coinsurance.Keeps out-of-pocket employee expenses same as current plan design-fully PPACA compliant!

MAJOR MEDICAL + INSURED HRA

• Equivalent coverage to current plans• Same employee out-of-pocket

expenses• Lower annual premium costs• Comply with PPACA• Typical annual savings averaging up

to $5k per employee!

YOUR SAVINGS!Combined plans cost less with same coverage!

“High Deductible” Plan + INSURED HRA

How It Works

• Employees receive two insurance cards; one for Major Medical Plan and one for INSURED HRA Plan.

• Employees also receive an information card that tells providers how to bill for services whenever they receive medical attention.

• If the service is covered by Major Medical but is subject to the new high deductible, employees bill will be paid by the INSURED HRA plan.

Similar “GAP” Strategies

• Medicare + “Medigap” Supplemental Plans

• IBM vs McIntosh-”Component” Based PCs

• Supplemental Dental and Vision Coverage

Sample Case – Employment Services

Census Status Medical Total58 Employee $471.11 $471.1123 2 Person $1,130.67 $1,130.6710 Family $1,366.19 $1,366.1991 $66,991.69

Current Plan: BCBS CB4 $500 DD / 20% to $1500

Census Status Medical Total58 Employee $494.39 $494.3923 2 Person $1,186.55 $1,186.5510 Family $1,483.18 $1,483.1891 $70,797.07

Renewal Plan: BCBS CB4 $500 DD / 20% to $1500

Census Status Medical Insured HRA Total58 Employee $320.36 $93.47 $413.8323 2 Person $768.88 $175.01 $943.8910 Family $961.09 $248.01 $1,209.1091 $57,802.61

Proposed Plan: BCBS CB15 & Insured HRA to $500 Deductible / 20% to $1,500

Proposed Plan: Annual Savings Versus Renewal Plan $155,933.52This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not

intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

Sample Case – Consultant Firm

Census Status Medical Total15 Employee $332.28 $332.285 2 Person $747.63 $747.639 Family $897.15 $897.15

29 $16,796.70

Current Plan: Health Plus $500 DD / 20% to $1500

Census Status Medical Total15 Employee $395.08 $395.085 2 Person $888.93 $888.939 Family $1,066.71 $1,066.71

29 $19,971.24

Renewal Plan: Health Plus $500 DD / 20% to $1500

Census Status Medical Insured HRA Total15 Employee $220.52 $84.67 $305.195 2 Person $518.22 $159.87 $678.099 Family $595.40 $225.54 $820.94

29 $15,356.76

Proposed Plan: McLaren POS & Insured HRA to $500 Deductible / 20% to $1,000

Proposed Plan: Annual Savings Versus Renewal Plan $55,373.76This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not

intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

Sample Case - Auto Dealership

Census Status Medical Total95 Employee $364.40 $364.4042 2 Person $619.49 $619.4996 Family $759.39 $759.39

233 $133,538.02

Current Plan: Priority Health $1,000 Deductible / 20% to $2,500

Census Status Medical Total95 Employee $435.47 $435.4742 2 Person $740.30 $740.3096 Family $907.48 $907.48

233 $159,580.33

Renewal Plan: Priority Health $1,000 Deductible / 20% to $2,500

Census Status Medical Insured HRA Total95 Employee $198.28 $47.29 $245.5742 2 Person $475.88 $85.13 $561.0196 Family $594.86 $119.97 $714.83

233 $115,515.25

Proposed Plan: BCBSM SB 4000 and Insured HRA $1,000 Deductible / 20% to 2,500

Proposed Plan: Annual Savings Versus Renewal Plan $528,780.96This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not

intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

Sample Case – Public School District

This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and

savings will vary by group. Contact your agent for a quote and savings illustration

How much can we save youand still comply with PPACA?

To schedule an on site appointment

Office: (248) 555.5555info@sampleagency.comwww.sampleagency.com