This week I dissected the health insurance invoice of a prospective client. It shows just 12 employees but a monthly total of $35,888 which – I must be a math savant – would also be their annualized premium per employee. (What's yours?)
That may be the highest of any group I’ve ever encountered.
We quoted the same 12 lives in the “Obamacare’ small group (2-50 employees) market, where insurers are required to take all applicants regardless of pre-existing conditions. The average monthly premium for the same 12 people is $19,324. Still pretty high.
Then there’s the self-funded ‘lite’ plans I’ve written about before, where the insurer gets to ask medical questions and set rates based off an underwritten risk. If reasonably healthy, their cost would be around $15,421. Better.
Either way, it looks like a slam dunk opportunity to save the group money.
And then ‘savant’ Jon remembered to request their most recent quarterly wage and tax statement. With a large contingent of part timers, their ATNE (average total number of employees) is well over 50.
That means the incumbent insurer is experience rating the group and, they are not eligible for an Obamacare plan.
Back to the drawing board.
