We’ve all read about entrepreneurs who started their business early in 2020. Heartbreaking timing, particularly for a restaurateur!

But for Rose, starting her IT Support Company when businesses transitioned to a remote workforce, the timing was nothing short of serendipitous. She’s done well and now she’s ready to offer health insurance for the first time.

We’ve reviewed multiple plan design options, but Rose is intent on offering ‘Platinum’ coverage; i.e., a $0 deductible, 100% coinsurance co-pay plan.

Alternatively, consider a ‘Gold’ $1,000 deductible 80%/20% coinsurance plan – one more in line with what other employers are offering – would save 18% in premium. More precisely, the annual premium saving per employee for the Gold Plan ($3,800) is significantly more than the higher Out of Pocket exposure ($1,500). I reminded Rose of the obvious; premiums are a fixed monthly expense. Deductibles and co-insurance are variable.

Then Rose reminded me of the contributions (sacrifices) of her employees in the launch of her launch the business.  She also knows a Platinum health plan will help her with recruiting.

The logic for ‘overspending’ for a health plan isn’t supported by the math.

But not everyone thinks like Spock!