(No, but not for want of trying. Read on.)
‘ABC IT Pros’ insures 30 employees (average age 31, 75% male) in a $5,000 High Deductible Health Plan (HSA). We moved them to Level Funding (i.e., self-funded ‘lite’) last year. ABC pays 100% of single coverage and 50% for dependents. Some highlights from their renewal:
- the monthly ‘premium’ (level funding) for the group is increasing only 6% to $10,224.
- adding $20,000 of employer paid group life insurance costs just $72/month but reduced the medical funding by 2% or $426.
- thanks to the demographic, plan design and a little luck, the claims fund has a $17,667 surplus, 90% of which will be refunded to ABC.
- costing just $18.45 per month per employee, we added a voluntary accident plan that pays first dollar benefits for an array of scheduled services. This offsets the high deductible and provides limited coverage for part time employees, who may have no insurance.
- The voluntary dental and vision plans renewed with no premium increase.
All things considered - premiums (net of employee contributions), payroll tax savings and the refund of claims surplus - ABC’s annualized cost per employee over the past 12 months . . . . . . .
$3,107!
