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Alternative Healthcare Consumer Presentation 022509 Vs Edit (Showview)

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We are saving businesses 30 to 50% of their health insurance premiums. We work with all name brand carriers.

We are saving businesses 30 to 50% of their health insurance premiums. We work with all name brand carriers.
Download a copy at www.higarizona.com/save.htm

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Alternative Healthcare Consumer Presentation 022509 Vs Edit (Showview) Alternative Healthcare Consumer Presentation 022509 Vs Edit (Showview) Presentation Transcript

  • Introducing… The small business solution to health care. The Alternative HealthCare® Program
  • No one is taking care of our needs! We desperately need a solution! ONLY 43% of SMALL BUSINESSES WITH LESS THAN 50 EMPLOYEES ARE OFFERING GROUP COVERAGE TODAY! ©2008 AAP, Inc.
  • Why Doesn’t Our Group Insurance Plan Work? If You Have One Sick Employee, EVERYONE is Paying the Higher Price! One or Two Elderly Employees Cause ALL of the Employees to Pay a Higher Price! Each Year Your Company Must Decide What Portion of the Increase it Will Pay! There Must Be a Better Way! ©2008 AAP, Inc.
  • Group Health Insurance Challenges Group Health Insurance Market has Declined by 13% 2000-2006 This is a Major Reason Why Group Heath Insurance Is Rising with Double Digit Increases! ©2008 AAP, Inc.
  • American Group Insurance Agen Inc 2008 Group Health Insurance The Insurance Company Mandates Minimum (usually 50% of employee cost) Employer Must Pay Employer Must Maintain 75% of Eligible Employees or 50% of Employees on Plan or Risk Termination Company Owns Policy and Mandates Coverage 1. Employer may terminate policy or change the terms without employee consent 2. Insurance carrier may terminate policy due to lack of participation Group Insurance is Very High Cost Due to the Guaranteed Issue of the Insurance Regardless of Health
  • The Myth of Group Insurance That Insurance Companies Don’t Want You To Know Group insurance always costs less Carrier and/or Employer can change YOUR plan without your approval The Carrier can terminate your insurance You have greater protection with group insurance versus individual ©2008 AAP, Inc.
  • What Is Individual Insurance? An Individual Major Medical Insurance Plan is a personal policy which is owned by you and covers you and your family. About 85% of individuals will qualify. The Policy is Guaranteed to be renewed to age 65 when you are eligible for Medicare. The Renewal rates are generally from 5% to 15% and the individual may shop any carrier to find a better lower cost policy. ©2008 AAP, Inc.
  • What About the Sick Employees?  Beginning in 2006, HIPAA required all states to offer state-guaranteed personal health policies. HIPAA eligible individuals who go into these plans are not subject to pre-existing conditions.  Each state MUST provide coverage.  There generally is no waiting period and coverage begins once the application is received by the State. ©2008 AAP, Inc.
  • The Advantages of Individual Insurance Plans  Costs are reduced by 30 – 50%  Individual OWNS the policy  The employer and/or insurance carrier cannot change the terms of the policy ©2008 AAP, Inc.
  • What The Employee GAINS…  Lower costs  Freedom of choice  Complete portability  The ability to acquire the coverage that fits your needs and your budget with any insurance company. ©2008 AAP, Inc.
  • What is A Health Reimbursement Arrangement? A Health Reimbursement Arrangement is a Tax Favored Health Plan Offered by the Employer IRS Publication 969 ©2008 AAP, Inc.
  • What Medical Expenses Are Eligible for Reimbursement? Qualified medical expenses from your HRA include the following: · Amounts paid for health insurance premiums. · Amounts paid for long-term care coverage. · Amounts that are not covered under another health accident and health plans. IRS Publication 969 ©2008 AAP, Inc.
  • Power of the Health Reimbursement Arrangement  The HRA allows the employer to deduct 100% of the contributions to the HRA.  Non Taxable to the Employee  A WIN WIN for the employer and employee! ©2008 AAP, Inc.
  • The Process: Start Saving Health Reimbursement Arrangement Established HRA Benefit Decide on & dollar Payroll amount Processing available for employees Employees Pre-Tax 125 Purchase Plan Individual Established Policies ©2008 AAP, Inc.
  • Employer Savings  Employer Dictates what Dollar Amount is put in HRA  Employees’ Rights are based on HRA Plan Design  Employer Savings Through POP 125: Avg. 11% ©2008 AAP, Inc.
  • HRA Schedule Of Benefits Recommended Schedule Options Option 1: All Employees The Same Amount of Reimbursement Example: All Eligible Employees Up to $200 Per Month Option 2: Scheduled Based on Class Example: Emp --- Up to $150 per month ES --- Up to $ 200 per month EC --- Up to $250 per month EF --- Up to $400 per month HIPAA Compliant Election: Additional $200 Per Month ©2008 AAP,Inc.
  • The Solution: Alternative HealthCare Program®  Tax deductibility of the employer’s contributions.  Ease of payment through payroll deduction.  Employees are provided with reduced costs through the government’s tax incentives.  POP 125 Plan Saves Employer & Employee Tax Dollars. ©2008 AAP, Inc.
  • The Alternative HealthCare® Program  The employer elects the Section 125 Premium Only Plan.  This enables the employee to pay for the balance of his health insurance with pre- taxed dollars.  Net savings to employee averages 25-30% in taxes through the POP Plan. ©2008 AAP, Inc.
  • Employer Administrative Ease  No issues with:  COBRA  FAMILY LEAVE  TERMINATIONS  ENROLLMENT INTO PLAN  ANNUAL RENEWAL DECISIONS  CAN BUDGET AND CONTROL THEIR OWN COSTS OF THE HRA PLAN ©2008 AAP, Inc.
  • Ease of Administration  AAP does the Heavy Lifting  Premium Insurance Accounts Established:  Virtual Checkless Accounts  Multiple Carriers – Non List Bill – Fully State Compliant  All Payroll Deductions & Distributions ©2008 AAP, Inc.
  • AAP Payroll & Administration Electronic Preparation and Distribution • Emp Doc HRA • Payment Schedule • Electronically receives/signed HRA/SPD • Reimbursements established • Electronically Sec 125 signs • Deductions set up ©2008 AAP, Inc.
  • Why Does the Administration Include Payroll? Payroll is the portal to all employee changes, benefit deductions and compliance. Therefore, through the payroll processes, new employees are properly notified of their benefit options and complex programs such as Health Reimbursement Accounts (HRA), Health Savings Accounts (HSA), Sec 125 Cafeteria, Eligibility Rules, and Termination Rules are properly managed. ©2008 AAP, Inc.
  • How Are The Funds Managed Payroll HRA Process Emp Payroll Deductions AAP Mo. HRA Prem. Reimbursement Emp 125 Prem. Deductions Deductions Employee Insurance PIA Virtual® Co Draws Account Payments ©2008 AAP, Inc.
  • Premium Insurance Account PIA Virtual® Company HRA Employer HRA Funds Funds $$$$ from Payroll Account (General Asset Account) Employee’s Payroll direct 125 Deduction $ deposited into personal account less sec 125 premium deductions PIA Virtual® Account- All premiums will be deposited to Insurance Companies this account in conjunction with ACH Funds payroll processing. ©2008 AAP, Inc.
  • The Alternative HealthCare® Program How New Employees Are Managed Notified by E-mail to offer Major Medical policy & more Your Agent is Notified and has Back Office Access to the amount of HRA funds financing premium. New Employee PIA Virtual® Account set up in 24 hrs, funded by Employer in 48 hrs. NO WORRY OF FUNDING PREMIUM OR BEING OUT OF COMPLIENCE ! Notified by E-mail to offer Major Medical policy & more Employee is e-mailed reminding them that they can keep their policy and provided with instructions on how to fund their PIA. The employer’s HRA deductions are immediately stopped. NO WORRY OF OVER PAYING. Terminated Employee ©2008 AAP, Inc.
  • Alternative HealthCare® COSTS One Time Set up Fee: $250.00 Administration Option #1Best Choice Payroll -------------------------$10.00 Per MO Per Employee Benefit Admin on employee with insurance only---$15 Per Emp./Mo. Administration Option #2 Admin of Plans Only : $15 Per Emp ./Mo. ©2008 AAP, Inc.
  • NEXT STEPS 1. PROVIDE AGENT WITH CENSUS DATA FOR QUOTE 2. PROVIDE DATA TO ESTABLISH PIA ACCOUNTS FOR PAYMENT OF INSURANCE PERMIUMS 3. DETERMINE HRA CONTRIBUTION SCHEDULE 4. COMPLETE HRA SUBSCRIPTION & ADMINISTRTION AGREEMENT 5. SET UP CONFERENCE CALL WITH AAP ADMINISTRATIVE TEAM ©2008 AAP, Inc.