Slide 1Working Together toBuild a Better Health Plan in the Face of Change
Slide 2Agenda1 Explain how educating your employees about Gap or Bridge Coverage can save you money today, even if no employee enrolls at this time.2 Demonstrate how allowing your employees to purchase Gap Coverage will save them money today Carl Barber and make the transition to a high deductible health plan [HDHP] easier tomorrow.
Slide 3Employer BenefitsBenefits Achieved Today by Educating Your Employees about Gap Coverage 1 Your employees will place of far greater value on the health insurance you currently offer. 2 They will expect increasing premiums, deductibles, and co-pays every year going forward. 3 They will understand how moving to a high deductible health plan and purchasing Gap Coverage can be to their benefit. 4 They will make every effort to minimize your current health insurance usage understanding this will result in lower premium increases for both employer and employee.
Slide 4Employer Key Points to KnowKey Points to Know As an Employer Considering the Addition of Gap Coverage 1 Compared to others, my employee paid gap coverage is a far greater benefit to both employees and employers. 2 No cost to the employer to add my gap coverage to your current benefit plan. 3 It can lower your payroll taxes. 4 Makes transitioning to a high deductible health plan easier. 5 We handle all education, enrollment, and claims processing. 6 Employees need up to one years exposure to gap coverage to feel comfortable choosing an HDHP option.
Slide 5Healthcare CostsWhere we have been…Premiums haveincreased 113% for employers and 131% foremployees overthe last decade
Slide 6Healthcare CostsWhere we are headed… By 2019 a single-family plan is projected to cost employers and employees a combined $28,530
Slide 7Healthcare CostsImpacting employees and employers • It is projected all companies large and small will be offering a HDHP within the next five years and 50% of employees will select this option • The current maximum deductible for a HDHP is $6000
Slide 8Healthcare CostsImpacting employees and employers •Unpaid medical bills are the number one reason for bankruptcy filings in the US today. •70% of those filing had health insurance. •The average debt was $18,000. •The current maximum deductible for a HDHP is $6000.
Slide 9What’s missing in your health plan?A solution to minimize the impact of increasingdeductibles and co-pays. Gap Coverage 1. Pays employee a fixed cash amount for covered medical expenses. Gap Coverage 2. No deductibles or co-pays. 3. Employee buys it, pays for it, and carries it from employer to employer and even into retirement. 4. My gap coverage has never had a premium increase on an existing policy allowing employees to lock-in today’s lower prices. Health 5. No need to change your current plan. Reimbursement Health Savings 6. Uses pre-tax dollars reducing payroll taxes Account for employers and employees. Account 7. Employee designs the plan that best suits their needs. 8. Benefits can be increased as deductibles and co-pays increase. 9. Affordable-plans average $6-$8 a week. 10. Works with your HRA and HSA or ours.
Slide 10What’s missing in your health plan?A solution to minimize the impact of increasingdeductibles and co-pays. Health Savings Account 1. Employee owned and controlled. Gap Coverage 2. Funded with pre-tax dollars. 3. Accumulates year to year if not spent. 4. Can be funded by employee and employer. 5. Employee takes employer contributions Health with them upon termination. Reimbursement Health Savings Account 6. Funds can be invested similar to an IRA Account with similar penalties. 7. Employee determines eligibility of expenses.
Slide 11What’s missing in your health plan?A solution to minimize the impact of increasingdeductibles and co-pays. Health Reimbursement Account 1. Employer owned and controlled. Gap Coverage 2. Funded with pre-tax dollars. 3. Stay with employer upon employee termination. 4. Funded by employer only. Health 5. Administered by plan service provider. Reimbursement Health Savings Account 6. Employer not required to prepay into fund. Account 7. Plan determines eligibility of expenses. 8. Employer decides if funds are rolled from year-to-year.
Slide 12What’s missing in your health plan?A solution to minimize the impact of increasingdeductibles and co-pays. Alternatives: Gap Coverage Flexible Spending Account- Similar to a Health Savings Account except with a “use it or lose it” rule. Health Personal Savings- Reimbursement Health Savings Account Account 42% of workers report they live paycheck to paycheck. ( Career Builder survey)
Employers underestimate the power of non-medicalcoverages and voluntary benefits to drive employeeloyalty.Are benefits very important for feelings of loyalty to a company? Health benefits 3Employers Yes Category 57% Employees Yes 66% Non-medical benefits Category 2Employers Yes 32% (dental, disability, Employees Yes 51% vision, life) A choice of Health Benefits Voluntary Employers Yes 24% benefits Employees Yes 40% 0.00% 10.00% 20.00% 30.00%Met40.00% 50.00% Employee Benefits Trends life 10th Annual Study of 60.00% 70.00%
Employees have a different perspective on the value ofpersonalized benefits than most employers.Because of economic conditions: • 73% would like more personalized benefits geared to employee age groups • 74% would like more personalized benefits geared to individual circumstances • 73% would like a greater variety of benefits to choose from • 59% are willing to bear a bigger share of the cost rather than lose benefits • 70% who are very satisfied with benefits state they are very satisfied with their job Met life 10th Annual Study of Employee Benefits Trends
Slide 13Adding Voluntary Benefits: •Increases employee loyalty •Improves job satisfaction and performance •Saves employers and employees money
Slide 14 Is there any reason whyyou would not want to addvoluntary benefits to your benefit plan?