Title: Be a Better Health Plan Buyer
1Be a Better Health Plan Buyer
- Tom Dondore, SPHR
- President
- HRS/TND Associates, Inc.
- Reading, PA 19610
- www.hrstndassociates.com
2Introduction
- The Health Insurance Marketplace
- Plan Design
- Increasing your buying savvy
- Tips for buying better
3Bloomsburg
Sunbury
Shamokin
Geisinger Medical Center
Good Samaritan Regional
Evangelical Community
St. Lukes Miners
Columbia
Centre Community
Ashland Regional
Muhlenburg
Montour
Union
Centre
Pottsville
Northumberland
Northampton
Snyder
Schuylkill
Pinnacle
Hershey
Lehigh Valley
Mifflin
Lehigh
Juniata
Good Samaritan Hospital
Lewistown
St. Lukes - Allentown
Berks
Dauphin
Perry
Lebanon
St. Lukes
Holy Spirit
Chambersburg
Memorial
Sacred Heart
Cumberland
Reading
Lancaster
York
Fulton
St.Josephs Reading
York
Fulton County
Adams
Franklin
Hanover
Lancaster General Hospitals
Gettysburg
Waynesboro
4The Players
- Capital Blue Cross
- Highmark
- Keystone Health Plan Central
- United Healthcare
- Health America
- Aetna
- Geisinger Health Plan
- Commercial Carriers
5Vocabulary of Plan Design
- Traditional
- Comprehensive
- PPO
- HMO
- POS
- Blended Programs
6Stuff to Know
- Underwriting - field and standard
- Commissions 100 rate neutral
- Brokers Working FOR you?
- Financing options larger groups
- Plan Design Options from carrier
- Plan Presentation Your companys strategy for
coverage
7Field Underwriting
- Difference is in quotation process
- Initial quotes are based on demographic census
- Quote then refined through medical underwriting
techniques - Each covered employee must complete a medical
status questionnaire or group leader completes
for larger groups
8Field Underwriting
- Like auto insurance you pay your own risk
- Medical questionnaires are processed by the plan
underwriting departments and final revised
quotations are prepared - Great potential savings if population is young,
healthy and mostly male - i.e., in good health
with low future risks - United, Health America, Aetna, Geisinger, many
commercials
9Traditional Underwriting/Rating
- The Blues
- Rating based on Demographics
- Emphasized are age, sex mix, industry type and
location - Experience takes in a large area and applies to
all - Carrier of last resort
10HSA's Health Savings Accounts
- Enabled by Medicare Reform Act in December 2003
- Start date was 1/1/04 -HAVENT TAKEN OFF BECAUSE
PREMIUMS DONT SEEM LOW ENOUGH FOR BIG
DEDUCTABLES - Designed to help individuals to save, tax-free,
for medical and retirement health expenses
11HSA's Health Savings Accounts
- Requires a high deductible health plan as its
base - minimum 1000 out of pocket - Available to all size organizations
- Both employer and employee, or combination, can
fund the plan
12HSA's Health Savings Accounts
- Are NOT like flexible spending accounts - (125
plans) - The employee owns the account, not the employer
- No use time limits
- Account can grow with tax free interest and rolls
over year to year
13HSA's Health Savings Accounts
- Employer contributions not subject to Social
Security taxation - Allowed for self insured plans with high
deductible - Trustees not required to determine if withdrawals
are used for medical expenses - Trustees may be individuals
14Employers Design Strategy
- First paying is most expensive both Rx and Dx
- Opt out programs pay off
- Benefit surveys focus on benefits ees want
- Knowledge of the general health of your workforce
15Employers Design Strategy
- Deductibles those who use the most, pay the most
- Co-premium (ee contribution) payment means all
ees pay - 100 plan coverage vs. 80/20 or 90/10
16Employers Design Strategy
- Consider your own internal self-insurance
program - Purchase higher deductible coverages
- Company pays a portion of the deductible with
proof of payment - Ex. 1000 deductible plan and company pays 500
for each ee
17Employers Design Strategy
- Must have at least a premium only 125 plan
pre-tax deductions - Tiers of premium 3, 4, or 5
- Dual options if over 20 participants
- What are common premium sharing programs?
18Top tips to try
- Deadlines matter
- 33 days is drop dead time
- 24 hours to 14 days quoting times
- Consider mail and delivery times
- Renewal delivery scheduled so you have little
shopping time - Self insuring some items STD, i.e.
- There are no exceptions
19Top tips to try
- Have your documentation ready
- Proof of corporate identity
- Proof of individual employment
- Waivers, enrollment forms and proper application
forms - First month premium check
20Top tips to try
- SHOP SHOP SHOP
- You do NOT have an annual contract
- Waivers--Offer incentives for ees to waive
coverage - Consider Plans with minor health screening prior
to rating - Get your quotes early - 60 days or more
- Use a broker
21Brokers and Services
- Sales direct from carrier offer limited service,
less since HIPAA - Use of broker NO additional cost for - they represent many plans and carriers
- Carrier reps have no incentive to save you money
- big case loads - HIPPA savvy should be required of your broker
22Brokers and Services
- Ask yourself, When was the last I heard from my
Broker? - All brokers get paid the same so find someone who
delivers value-added options - Enrollments, questions, training, etc.
23Brokers and Service Value added options
- COBRA Administration
- On site enrollments
- Health Advocacy
- Discount programs
- FMLA Administration
- HR Services
- TPA Services
- Intranet site
- Understanding of the employee perspective
24YOUR Questions???
- Thank you for your attention
- A complete copy of this slide program is
available on our website homepage at
www.hrstndassociates.com