Beneplan demystifies the Canadian health insurance / group benefits renewal process with insurance companies. In this presentation, Beneplan explains the math behind renewals and how a plan sponsor can understand if the quote they've received from a health insurance company is fair, or if it contains a 'marketing discount' which will evaporate at the first renewal.
How to negotiate benefits like a Fortune 500 Company Beneplan
The document discusses the Beneplan Co-operative, which is a member-owned cooperative that negotiates lower insurance fees and premiums for its small and medium-sized employer members by leveraging their combined volume. It explains how large employers are able to negotiate better deals from insurance companies and outlines some of the strategies and benefits Beneplan uses to achieve similar savings and returns for its members, such as negotiating reserves, trends, premium refunds, and perks. The document also provides examples of savings and refunds received by some CIFFA member companies that participate in the Beneplan Co-operative.
Beneplan : The Future of Canadian Benefits 2017Beneplan
At Beneplan, we're asking ourselves: how possible are these future benefits scenarios?
- WeChat taking over as a group benefits insurer
- AI and Chatbots running your benefit plan
- Medical marijuana being a covered benefit
- Pharmacogenetics being part of a benefit plan
- A shift towards more mutualization and co-operation
- More use of the Reformulary drug plan
- Total rewards dashboards (SAAS)
- The most knowledgeable brokers becoming more relevant
Clermont County 2018 Horan Renewal Update - Commissioners PresentationClermont County, Ohio
The document provides an agenda and updates on Clermont County's 2018 benefits renewal. It summarizes 2015-2016 financials and claims data, provides 2017 financials year-to-date, and projects 2018 medical and dental renewals. UHC and Humana were selected as finalists for medical based on cost and plan details. UHC offered higher pharmacy rebates and potential savings from plan changes. Dental was projected to be flat, with DCP selected over MetLife due to network match. Other benefits were noted to be under rate guarantees.
This document summarizes recommendations to renew contracts with BlueCross BlueShield for medical insurance and MetLife for dental insurance. BlueCross BlueShield is proposing a 3.3% decrease for one plan and a 2.15% increase for another plan, with deductibles increasing to $5,000. MetLife dental insurance is proposing a 9.6% increase. Adding a Health Reimbursement Account is also recommended to reimburse employees for out-of-pocket costs between $3,000 and $5,000. The recommendations would result in total savings of approximately $37,829 for the budget.
Chris Hylton, a benefits and HR consultant, gave a presentation on wellness and benefit planning. He discussed types of benefit plans like fully insured, ASO, and flex plans. Joint purchasing allows for more flexibility and customization of benefits. Benefit trends include rising drug costs, especially for biologics, and a focus on health and wellness programs to address chronic diseases and improve employee productivity. Carrier programs use electronic claims submission and audits to reduce costs. Flexible spending accounts and wellness initiatives were recommended.
The document discusses options for reducing the high costs of health care in the United States. It proposes a "Simple Option Solution" (SOS) that involves raising deductibles on major medical plans and using Section 105 to buy back benefits, saving employers 10-80% on costs while providing the same or better benefits. Key aspects of the SOS include customizing finance and administration of benefits, providing ongoing member education, and services from ClaimLinx like claims analysis, consulting, and customer support.
School Bus Drivers Health Plan Ibt Brand3froster007
The document discusses a health plan for newly organized bus drivers being negotiated by the International Brotherhood of Teamsters. Key points include:
- The Teamsters are organizing bus drivers across the country and negotiating health benefits is an important part of this strategy.
- The IBT Voluntary Employee Benefit Trust is willing to assume the risk of covering these newly organized workers under certain conditions to offer the best benefits at a low cost.
- Several plan design options and contribution requirements are presented for negotiators to consider, including monthly composite rates and sample bargaining language.
How to negotiate benefits like a Fortune 500 Company Beneplan
The document discusses the Beneplan Co-operative, which is a member-owned cooperative that negotiates lower insurance fees and premiums for its small and medium-sized employer members by leveraging their combined volume. It explains how large employers are able to negotiate better deals from insurance companies and outlines some of the strategies and benefits Beneplan uses to achieve similar savings and returns for its members, such as negotiating reserves, trends, premium refunds, and perks. The document also provides examples of savings and refunds received by some CIFFA member companies that participate in the Beneplan Co-operative.
Beneplan : The Future of Canadian Benefits 2017Beneplan
At Beneplan, we're asking ourselves: how possible are these future benefits scenarios?
- WeChat taking over as a group benefits insurer
- AI and Chatbots running your benefit plan
- Medical marijuana being a covered benefit
- Pharmacogenetics being part of a benefit plan
- A shift towards more mutualization and co-operation
- More use of the Reformulary drug plan
- Total rewards dashboards (SAAS)
- The most knowledgeable brokers becoming more relevant
Clermont County 2018 Horan Renewal Update - Commissioners PresentationClermont County, Ohio
The document provides an agenda and updates on Clermont County's 2018 benefits renewal. It summarizes 2015-2016 financials and claims data, provides 2017 financials year-to-date, and projects 2018 medical and dental renewals. UHC and Humana were selected as finalists for medical based on cost and plan details. UHC offered higher pharmacy rebates and potential savings from plan changes. Dental was projected to be flat, with DCP selected over MetLife due to network match. Other benefits were noted to be under rate guarantees.
This document summarizes recommendations to renew contracts with BlueCross BlueShield for medical insurance and MetLife for dental insurance. BlueCross BlueShield is proposing a 3.3% decrease for one plan and a 2.15% increase for another plan, with deductibles increasing to $5,000. MetLife dental insurance is proposing a 9.6% increase. Adding a Health Reimbursement Account is also recommended to reimburse employees for out-of-pocket costs between $3,000 and $5,000. The recommendations would result in total savings of approximately $37,829 for the budget.
Chris Hylton, a benefits and HR consultant, gave a presentation on wellness and benefit planning. He discussed types of benefit plans like fully insured, ASO, and flex plans. Joint purchasing allows for more flexibility and customization of benefits. Benefit trends include rising drug costs, especially for biologics, and a focus on health and wellness programs to address chronic diseases and improve employee productivity. Carrier programs use electronic claims submission and audits to reduce costs. Flexible spending accounts and wellness initiatives were recommended.
The document discusses options for reducing the high costs of health care in the United States. It proposes a "Simple Option Solution" (SOS) that involves raising deductibles on major medical plans and using Section 105 to buy back benefits, saving employers 10-80% on costs while providing the same or better benefits. Key aspects of the SOS include customizing finance and administration of benefits, providing ongoing member education, and services from ClaimLinx like claims analysis, consulting, and customer support.
School Bus Drivers Health Plan Ibt Brand3froster007
The document discusses a health plan for newly organized bus drivers being negotiated by the International Brotherhood of Teamsters. Key points include:
- The Teamsters are organizing bus drivers across the country and negotiating health benefits is an important part of this strategy.
- The IBT Voluntary Employee Benefit Trust is willing to assume the risk of covering these newly organized workers under certain conditions to offer the best benefits at a low cost.
- Several plan design options and contribution requirements are presented for negotiators to consider, including monthly composite rates and sample bargaining language.
ISCEBS 2014 Presentation: Health Care Reform’s Impact on Disability ManagementSpring Consulting Group
The document discusses key trends in integrated disability management in light of healthcare reform. It notes that integration continues to progress across employers of all sizes, with programs becoming more mature and sophisticated. Health management programs are also broadening in scope. The document highlights expanding ADA accommodation management to be on par with FMLA as a top trend, as well as growing interest in voluntary benefits to fill coverage gaps. Centralizing absence management and standardizing approaches are also discussed as important trends to improve the employee experience and reduce costs. Formal return-to-work and stay-at-work programs are emphasized as best practices.
A document discusses the evolving role of captives within the changing healthcare environment. It notes rising healthcare costs and the growth of accountable care organizations (ACOs) and self-insurance. Captives are increasingly being used to manage ACO and employee healthcare risks. Case studies show how group captives can generate savings for employers by pooling stop-loss insurance and improving risk management. Forming a successful captive requires thorough planning and establishing sound fundamentals.
Pediatric Dental Benefits Under the ACA - What Employers (and dentists) Need ...Spring Consulting Group
This document provides an overview of pediatric dental benefits under the Affordable Care Act and how they may impact dental practices. It discusses how pediatric dental coverage is considered an essential health benefit and must be included in certain health plans. It describes the three structures for how pediatric dental benefits can be offered (embedded, stand alone, bundled). It also outlines some pediatric dental plan benefit options and issues dental practices may face in navigating these new benefits, such as deciding whether to credential with dental insurance providers and how to manage claims processing.
Health Care Reform Strategies for Small Employers:
• Health Care Tax Credits and Penalties
• The Recently Delayed Pay or Play Mandate
• Health Insurance Exchanges
• SHOPs
• Other Cost-Savings Opportunities
• Strategic Decision Making for Large and Small Employers
• And more!
This session focuses on Ed Health, a medical stop loss group captive consisting of 11 Boston-area colleges that Spring assisted in the development of. It details Ed Health’s success to date and lessons learned through the development and ongoing management of a medical stop loss group captive.
The document describes a supplemental insurance plan called the Premium Saver that is designed to help reduce the costs of employer-provided group medical coverage. The Premium Saver pays deductibles and coinsurance to lower out-of-pocket costs. It covers hospital and outpatient expenses after the deductible is met. Employers can choose the benefit amount and deductible to maximize savings for their group. The example shows how combining the Premium Saver with a higher deductible major medical plan saved a group over $25,000 annually in premiums compared to their previous coverage. The process for getting a quote and enrolling is described as simple for both brokers and employers.
Why Every Biz Should Consider Cdhp From Tbajanderson87
- Consumer driven health plans (CDHPs) can save employers 20-40% on premium contributions and lower long term costs through reduced trend and utilization. Employees also benefit by becoming healthier consumers of healthcare.
- A study found CDHPs can save employers up to 29% compared to standard PPOs due to decreased over-utilization, increased preventative care, and participation in wellness programs.
- CDHPs empower employees through health savings accounts that allow tax-free savings for current and future medical costs while also building wealth over time. However, a gradual transition plan is needed and lower-paid employees may not contribute.
This document discusses 9 important benefits decisions facing employers in 2016. It covers deciding whether to offer health insurance and pay penalties, managing required benefits reporting, weighing high-deductible health plans, switching to a health insurance exchange, offering voluntary benefits, providing tools to help employees choose benefits, using wellness incentives, planning spouse/partner coverage, and preparing for the upcoming Cadillac tax. The document provides context and considerations for each decision to help employers navigate an evolving benefits landscape.
This document discusses strategies for retirement planning and provides tips for refocusing, repairing, and rebuilding retirement plans. It notes that retirement dreams often involve financial independence, but many people fail to adequately plan. The document emphasizes starting retirement planning early, increasing savings over time, controlling expenses, and using a combination of strategies to address any gaps between savings and income needs in retirement.
The document discusses paid sick leave compliance and best practices for employers. It provides an overview of the expansion of paid sick leave laws from one state and seven jurisdictions in 2014 to three states and eighteen jurisdictions currently. It reviews the key details and requirements of paid sick leave laws in states like California, Connecticut, and Massachusetts as well as various cities. These include eligibility, accrual, usage limits, family definitions, and certification processes. The document also discusses challenges employers face in managing paid sick leave and provides resources for continued compliance.
AH CM 11.13.18 - Item #7 ppt insurance renewalahcitycouncil
This document summarizes an ordinance to renew contracts with BlueCross BlueShield for medical insurance and MetLife for dental insurance. Catto & Catto obtained renewals from multiple providers, and they are recommending renewing with BlueCross BlueShield for medical, which offers a 4.9% decrease, and MetLife for dental, which offers a 3.4% increase. The renewals would result in an overall annual savings of approximately $45,715 for the city budget.
The document provides an overview and summary of the employee benefit plans for an organization's open enrollment period. It includes information about the new medical and prescription drug plan administrator, wellness incentives that reduce premium costs, and an overview of the dental, vision, life, disability, and voluntary accident and critical illness plans. Employees can obtain ID cards, check claims status, and find plan forms on the new administrator's website. The summary also reviews dependent eligibility, premium costs for each plan, and details about coverage and provider networks.
Employer coverage and the era of exchangesagavrilescu
The document summarizes key provisions of the Affordable Care Act that impact employers and their decisions around offering health insurance. It discusses the employer mandate requiring firms with over 50 employees to offer affordable coverage or face penalties, and notes that while the mandate was delayed until 2015, other ACA requirements like the individual mandate and health insurance exchanges take effect in 2014. The summary examines factors that may influence employer decisions around offering coverage, such as reducing workforce size, limiting hours, lowering premium contributions, and dropping coverage for early retirees to mitigate costs under the new rules.
The document proposes a new pension scheme called the Wage in Retirement Scheme (WinRS) with the following features:
- It would provide a base pension benefit with potential increases targeted at RPI to provide an income for life within a fixed employer budget.
- Members would contribute 6% and the employer would contribute a fixed 17.1%. Pensions would accrue at a rate of 1/60th and include benefits for partners.
- Annual increases for current pensioners would be targeted at RPI but guaranteed to increase at least in line with CPI up to 2.5%. Deferred pensions would not be guaranteed revaluation.
- The scheme aims to manage funding by annually comparing assets to
Integrated employee benefit programs can help increase productivity in three ways. First, they raise employee awareness of benefits that can help change health behaviors. Second, employer concerns over productivity, costs, and regulation are driving more comprehensive programs. Third, engaged employees miss fewer days of work and exceed performance standards, so employee engagement is key. Successful programs not only impact time lost to leave but also keep employees at work or prevent leave in the first place through various touchpoints along the health, productivity and leave continuum.
The document discusses the benefits of establishing a group captive insurance program. It notes that previously the industry faced high pricing from insurers who did not recognize their focus on safety. By sharing loss information and forming a group captive, members saw premium rate reductions, more investment in safety programs, lower losses over time, and underwriting profits returned to the group. This led to expanded coverage options and a high member retention rate, providing a long-term, market-driven insurance solution for the industry.
HG Enterprises currently offers its 16 employees a benefits package including term life insurance, sick leave, health insurance, a 401(k) plan, and a defined benefit pension plan. The consulting firm found several issues with the current package and makes recommendations to improve benefits while lowering costs. Key recommendations include lowering health insurance premium contributions for employees, implementing a wellness program, providing unpaid maternity leave, lowering the assumed salary growth rate for pensions from 2% to 1.5%, and correcting an underestimate of life expectancy at retirement age. The changes would enhance benefits for attracting and retaining employees while reducing HG's annual costs from $331,825 to a more sustainable level.
Health Care Reform - Small Business Health Options Program (SHOP) UpdatesCBIZ, Inc.
One of the components of the Affordable Care Act is the Small Business Health Options Program (SHOP). The SHOP is the marketplace, sometimes referred to as “exchange”, specific to small employers.
Long term decision-making for health and social care
Long term decision-making for health and social care
Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care
Defining investment:
A current commitment of £ for a period of time in order to derive future payments that will compensate for:
• the time the funds are committed
• the expected rate of inflation
• uncertainty of future flow of funds
ISCEBS 2014 Presentation: Health Care Reform’s Impact on Disability ManagementSpring Consulting Group
The document discusses key trends in integrated disability management in light of healthcare reform. It notes that integration continues to progress across employers of all sizes, with programs becoming more mature and sophisticated. Health management programs are also broadening in scope. The document highlights expanding ADA accommodation management to be on par with FMLA as a top trend, as well as growing interest in voluntary benefits to fill coverage gaps. Centralizing absence management and standardizing approaches are also discussed as important trends to improve the employee experience and reduce costs. Formal return-to-work and stay-at-work programs are emphasized as best practices.
A document discusses the evolving role of captives within the changing healthcare environment. It notes rising healthcare costs and the growth of accountable care organizations (ACOs) and self-insurance. Captives are increasingly being used to manage ACO and employee healthcare risks. Case studies show how group captives can generate savings for employers by pooling stop-loss insurance and improving risk management. Forming a successful captive requires thorough planning and establishing sound fundamentals.
Pediatric Dental Benefits Under the ACA - What Employers (and dentists) Need ...Spring Consulting Group
This document provides an overview of pediatric dental benefits under the Affordable Care Act and how they may impact dental practices. It discusses how pediatric dental coverage is considered an essential health benefit and must be included in certain health plans. It describes the three structures for how pediatric dental benefits can be offered (embedded, stand alone, bundled). It also outlines some pediatric dental plan benefit options and issues dental practices may face in navigating these new benefits, such as deciding whether to credential with dental insurance providers and how to manage claims processing.
Health Care Reform Strategies for Small Employers:
• Health Care Tax Credits and Penalties
• The Recently Delayed Pay or Play Mandate
• Health Insurance Exchanges
• SHOPs
• Other Cost-Savings Opportunities
• Strategic Decision Making for Large and Small Employers
• And more!
This session focuses on Ed Health, a medical stop loss group captive consisting of 11 Boston-area colleges that Spring assisted in the development of. It details Ed Health’s success to date and lessons learned through the development and ongoing management of a medical stop loss group captive.
The document describes a supplemental insurance plan called the Premium Saver that is designed to help reduce the costs of employer-provided group medical coverage. The Premium Saver pays deductibles and coinsurance to lower out-of-pocket costs. It covers hospital and outpatient expenses after the deductible is met. Employers can choose the benefit amount and deductible to maximize savings for their group. The example shows how combining the Premium Saver with a higher deductible major medical plan saved a group over $25,000 annually in premiums compared to their previous coverage. The process for getting a quote and enrolling is described as simple for both brokers and employers.
Why Every Biz Should Consider Cdhp From Tbajanderson87
- Consumer driven health plans (CDHPs) can save employers 20-40% on premium contributions and lower long term costs through reduced trend and utilization. Employees also benefit by becoming healthier consumers of healthcare.
- A study found CDHPs can save employers up to 29% compared to standard PPOs due to decreased over-utilization, increased preventative care, and participation in wellness programs.
- CDHPs empower employees through health savings accounts that allow tax-free savings for current and future medical costs while also building wealth over time. However, a gradual transition plan is needed and lower-paid employees may not contribute.
This document discusses 9 important benefits decisions facing employers in 2016. It covers deciding whether to offer health insurance and pay penalties, managing required benefits reporting, weighing high-deductible health plans, switching to a health insurance exchange, offering voluntary benefits, providing tools to help employees choose benefits, using wellness incentives, planning spouse/partner coverage, and preparing for the upcoming Cadillac tax. The document provides context and considerations for each decision to help employers navigate an evolving benefits landscape.
This document discusses strategies for retirement planning and provides tips for refocusing, repairing, and rebuilding retirement plans. It notes that retirement dreams often involve financial independence, but many people fail to adequately plan. The document emphasizes starting retirement planning early, increasing savings over time, controlling expenses, and using a combination of strategies to address any gaps between savings and income needs in retirement.
The document discusses paid sick leave compliance and best practices for employers. It provides an overview of the expansion of paid sick leave laws from one state and seven jurisdictions in 2014 to three states and eighteen jurisdictions currently. It reviews the key details and requirements of paid sick leave laws in states like California, Connecticut, and Massachusetts as well as various cities. These include eligibility, accrual, usage limits, family definitions, and certification processes. The document also discusses challenges employers face in managing paid sick leave and provides resources for continued compliance.
AH CM 11.13.18 - Item #7 ppt insurance renewalahcitycouncil
This document summarizes an ordinance to renew contracts with BlueCross BlueShield for medical insurance and MetLife for dental insurance. Catto & Catto obtained renewals from multiple providers, and they are recommending renewing with BlueCross BlueShield for medical, which offers a 4.9% decrease, and MetLife for dental, which offers a 3.4% increase. The renewals would result in an overall annual savings of approximately $45,715 for the city budget.
The document provides an overview and summary of the employee benefit plans for an organization's open enrollment period. It includes information about the new medical and prescription drug plan administrator, wellness incentives that reduce premium costs, and an overview of the dental, vision, life, disability, and voluntary accident and critical illness plans. Employees can obtain ID cards, check claims status, and find plan forms on the new administrator's website. The summary also reviews dependent eligibility, premium costs for each plan, and details about coverage and provider networks.
Employer coverage and the era of exchangesagavrilescu
The document summarizes key provisions of the Affordable Care Act that impact employers and their decisions around offering health insurance. It discusses the employer mandate requiring firms with over 50 employees to offer affordable coverage or face penalties, and notes that while the mandate was delayed until 2015, other ACA requirements like the individual mandate and health insurance exchanges take effect in 2014. The summary examines factors that may influence employer decisions around offering coverage, such as reducing workforce size, limiting hours, lowering premium contributions, and dropping coverage for early retirees to mitigate costs under the new rules.
The document proposes a new pension scheme called the Wage in Retirement Scheme (WinRS) with the following features:
- It would provide a base pension benefit with potential increases targeted at RPI to provide an income for life within a fixed employer budget.
- Members would contribute 6% and the employer would contribute a fixed 17.1%. Pensions would accrue at a rate of 1/60th and include benefits for partners.
- Annual increases for current pensioners would be targeted at RPI but guaranteed to increase at least in line with CPI up to 2.5%. Deferred pensions would not be guaranteed revaluation.
- The scheme aims to manage funding by annually comparing assets to
Integrated employee benefit programs can help increase productivity in three ways. First, they raise employee awareness of benefits that can help change health behaviors. Second, employer concerns over productivity, costs, and regulation are driving more comprehensive programs. Third, engaged employees miss fewer days of work and exceed performance standards, so employee engagement is key. Successful programs not only impact time lost to leave but also keep employees at work or prevent leave in the first place through various touchpoints along the health, productivity and leave continuum.
The document discusses the benefits of establishing a group captive insurance program. It notes that previously the industry faced high pricing from insurers who did not recognize their focus on safety. By sharing loss information and forming a group captive, members saw premium rate reductions, more investment in safety programs, lower losses over time, and underwriting profits returned to the group. This led to expanded coverage options and a high member retention rate, providing a long-term, market-driven insurance solution for the industry.
HG Enterprises currently offers its 16 employees a benefits package including term life insurance, sick leave, health insurance, a 401(k) plan, and a defined benefit pension plan. The consulting firm found several issues with the current package and makes recommendations to improve benefits while lowering costs. Key recommendations include lowering health insurance premium contributions for employees, implementing a wellness program, providing unpaid maternity leave, lowering the assumed salary growth rate for pensions from 2% to 1.5%, and correcting an underestimate of life expectancy at retirement age. The changes would enhance benefits for attracting and retaining employees while reducing HG's annual costs from $331,825 to a more sustainable level.
Health Care Reform - Small Business Health Options Program (SHOP) UpdatesCBIZ, Inc.
One of the components of the Affordable Care Act is the Small Business Health Options Program (SHOP). The SHOP is the marketplace, sometimes referred to as “exchange”, specific to small employers.
Long term decision-making for health and social care
Long term decision-making for health and social care
Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care Long term decision-making for health and social care
Defining investment:
A current commitment of £ for a period of time in order to derive future payments that will compensate for:
• the time the funds are committed
• the expected rate of inflation
• uncertainty of future flow of funds
Benefit Commerce Groups Neutralizer-Health Plan StrategyRonald Lain
BCG's Trend Neutralizer is a proven
program that guarantees a
reduction in your medical trend
costs, based on the level of your
company’s participation in
various health plan best
practices.
Learn about how to effectively shop for employee benefit plans by understanding the different type of plans, how pricing works and what to ask your advisor.
Presentation to show how a High Deductible Health Plan paired with an HRA or HSA can allow an employer to maintain medical benefits while savings 10% or more
This document discusses the important role of agents and brokers in selecting health plans and ensuring successful employee enrollment. It notes that 90% of employers rely on brokers for health insurance assistance. While 90% of employers shopped for different plans, most made no change, showing the influence of brokers. The document also outlines strategies brokers can take to educate clients and employees about new types of plans like consumer-driven health plans. This includes becoming more strategic advisors focused on utilization reduction and engagement. Finally, it emphasizes that agents who become experts in consumer-driven health plans will be very successful in the market.
How to Save Money on Group Health InsuranceSuperAgent
This document summarizes a tool called SuperAgent that helps users compare health insurance plans. SuperAgent allows users to quickly submit employee information, allocate budgets, compare over 400 plans based on cost and quality, and enroll in plans online. It provides transparent comparisons that can save small businesses an average of $700-1000 per employee per year by helping them select the most cost-effective plans. The document explains how SuperAgent's web-based comparisons simplify the confusing process of choosing health insurance.
ClaimLinx specializes in consulting and benefit administration for self-funded medical plans. Their Simple Option Solution program allows employers to raise deductibles on their health plans and implement a Section 105 medical reimbursement plan to "buy back" benefits for less. This can save employers 10-80% on health costs. The implementation process involves presenting employers with customized savings projections and transitioning their plan administration to ClaimLinx as the third-party administrator. ClaimLinx handles ongoing services like claims processing and reporting to help employers lower costs while maintaining coverage for employees.
Managing health insurance costs is challenging in an era of rising inflation and new healthcare laws. Traditional cost control methods like increasing deductibles have diminishing returns and hurt employee satisfaction. Creative strategies using consumer-driven health plans paired with health reimbursement accounts can lower costs 20-30% while maintaining coverage quality. Proper employee education is crucial when implementing new plans. The healthcare industry is undergoing significant changes due to reform that will impact employers and employees.
Understanding & Managing Your Workers' Compensation Experience Modification F...DeanDCamera
This book will help you to understand: business risks and threats
caused by a high or rising Experience Mod; how the Experience Mod is calculated; how injury costs are “financed” by
the employer through the impact of the Experience Mod; strategies to manage the Experience Mod toward the minimum to reduce costs
This document discusses managing payroll costs and provides information about TriCore's Payroll Cost Management (PCM) program. The PCM program aims to reduce clients' total payroll costs through integrated payroll administration, employee benefits administration, workers' compensation insurance management, and HR compliance services. Testimonials from clients indicate they have saved thousands to hundreds of thousands of dollars per year in costs after engaging TriCore's PCM services. TriCore guarantees to reduce clients' overall employee costs by at least $10,000 or their payroll processing fees will be waived for one year.
FinanceTest ISummer 20191. Using the following data, prepare a .docxericn8
FinanceTest ISummer 2019
1. Using the following data, prepare a three-stage ROE decomposition (DuPont Analysis) for Home Depot.
Return on equity (ROE)
12%
Sales
$5,000
Current ratio
2.29
Dividend payout ratio
25%
Dividends paid
$100
Total liabilities
$4,000
Accounts payable
$600
My work:
1) ROE = Net Income/Sales x Sales/ Equity (or 12%)
2) ROE = Net Income/ Sales x Sales/Assets x Assets/Equity
or …….(400/5,000) (5,000/ Assets) (Assets/Equity)
3) ROE = (Net Profit Margin) (Asset Turnover) (Equity Multiple)
Side notes:
(Accounts Payable) (Current Ratio) = 1,374/ 600 = 2.29
Current assets = 1,374
Current Liability or Accounts payable = 600
Current ratio = 2.29
2. Your task is to update your firm’s long-term financial model (that was originally prepared last year). In financial modeling, a key assumption involves the firm’s dividend policy, as typically specified by the firm’s payout ratio.
You recognize many differences between today and last year.
Last year, the Treasury Yield Curve was upward sloping. Today, the Treasury Yield Curve is inverted. Last year, the Fed was expected to raise interest rates. Today, the Fed is expected to lower interest rates. We also know the following:
TodayLast year
Forward P/E
16
20
Equity Multiplier
2.50
1.95
Based on the differences described above, would you expect the payout ratio in this year’s financial model to be higher or lower than it was last year? Briefly explain.
Based on the differences above, I expect that the payout ratio in this year’s financial model to be lower along with short term headwinds. The earnings per share is going down and the price is taking a hit. Also, assets are leaning towards the heavier side.
3. Glencore will need to have $3,000 on June 20, 2023 (four years from now) to purchase new equipment. To accumulate this money, it will make four equal investments, with the first of the equal investments beginning one year from now.
a. If Glencore can earn an annual interest rate of 10%, how much must it invest per year?
My work:
P1 = 646.41 x 1.10
P2 = 646.41 x 1.10
P3 = 646.41 x 1.10
P4 = 646.41 x 1.10
Invest per year = $646.41
=PMT (10%,4,0,3000,0)
b. After presenting your findings from the above calculation, Glencore’s CFO asks you to consider an alternative scenario. Both changes are to occur today and will continue throughout the four years. You are to consider both changes simultaneously.
1. The interest rate will increase today and remain at that higher level.
2. There will still be four equal investments, but the first investment will occur immediately.
Without doing any calculations, how would these changes (considered simultaneously) affect your answer in part a? Using no more than 50 words, carefully justify your response. Do not write more 50 words.
My response:
With a higher rate (ex: 12%) Glencore’s money is working harder. If less money is put down, then more money will result in t.
Finance refers to deciding how to spend money, as opposed to accounting which tracks money spent. Finance uses cash, time value of money, and risk to evaluate investments and their return on investment (ROI). ROI tools include payback period, internal rate of return, and net present value, but rely on estimates and projections that are open to manipulation. Political and self-interest factors also influence financial decisions. When proposing new investments, clinicians should frame the argument in terms of investment and ROI, using simple projections to estimate increased cash flow and an internal rate of return over 5% to make the strongest financial case. Hospital revenue is regulated in Maryland, aiming to include costs of uninsured in rates paid by insured. As reimbursement is fixed per
The document discusses strategies for managing employee compensation and benefits during an economic downturn. It recommends reviewing all aspects of the total rewards package, including base pay, incentives, health insurance, retirement benefits, and time off. Employers should evaluate how their benefits compare to market standards and communicate the total value of the rewards package to employees.
Trend Neutralizer - Health Plan Strategy Ronald Lain
BCG's Trend Neutralizer is a proven
program that guarantees a
reduction in your medical trend
costs, based on the level of your
company’s participation in
various health plan best
practices.
- NSSF provides a 200% match on employee contributions, meaning for every 1 shilling contributed, the employer contributes 2 shillings.
- Over the long run, the NSSF contributions will exceed both employee and employer contributions to total savings.
- After 10, 20, or 25 years of saving with NSSF at a 5% average annual return, total savings including NSSF contributions would be over 4.6 million, 12.3 million, or 17.8 million shillings respectively.
Healthcare Using the analysis in a Capital Investment Plan.pdfsdfghj21
The document discusses using break-even analysis in capital investment proposals for healthcare organizations. It explains fixed and variable costs, using the example of a skilled nursing facility. Fixed costs like administration, facilities, and financing expenses remain constant with patient volume. Variable costs like supplies and labor increase with more patients. Break-even analysis can determine the patient volume needed to cover total costs. This helps evaluate proposals to increase volume or lower costs.
Portsmouth Chamber Business Toolkit Seriesdlinehan2
The presentation provided an overview of Retirement Solution Group (RSG) and how they help business owners supplement future "transaction events" like sales through customized retirement plans. RSG administers over 250 retirement plans, works with over 8,000 participants, and has expertise in fiduciary responsibilities, investment strategies, and plan design. Case studies showed how RSG increased clients' tax deductions through crossover testing, cash balance plans, and defined benefit carve-outs. The presentation concluded that working with specialists like RSG can help business owners fix financial "problems" and ensure strong retirement accounts complement future transactions.
Bridgestone Behavioral Health Centre Case Study SolutionMohammad Mohtashim
The weighted average contribution margin (WACM) of Bridgestone is 70%, indicating it keeps variable costs low. However, the margin of safety is only $9000, showing fixed expenses are too high. Reducing discretionary costs like salaries by 10% could lower the break-even point and increase the margin of safety. Services like urinalysis, group counseling and individual counseling contribute the most to the WACM and should be focused on. The WACM helps management control operations and compensate changes in one area by adjusting another to remain profitable.
Similar to 2016 Beneplan HR Workshop - How health & dental premiums and renewals are calculated (20)
Beneplan is an employee benefits co-operative representing tens of thousands of Canadians. Members receive premium refunds when their claims are low. To learn more, visit beneplan.ca.
The Beneplan Annual General Meeting agenda covered approval of previous meeting minutes, introduction of the current board of directors, financial reports, proposed bylaw changes, and manager's report. Key highlights included a higher patronage dividend in 2017 versus 2016 due to growth in members and improved claims management. The meeting also recognized retiring board members and introduced nominees for the new board. A motion was made to approve proposed bylaw changes allowing electronic voting.
Beneplan Annual HR and Employment Law Workshop - Sherrard Kuzz PresentationBeneplan
The document provides an overview of Bill 148, the Fair Workplaces, Better Jobs Act, 2017 in Ontario. It discusses several key changes proposed by the bill, including increasing the minimum wage and improving protections for employees. Some of the major changes covered are enhancing equal pay provisions, increasing vacation and leave entitlements, facilitating union certification, and providing greater protections for employees during and after collective bargaining processes. The presentation aims to outline the context and major components of Bill 148.
Beneplan Annual HR and Employment Law Workshop - Joel Gomes PresentationBeneplan
Joel Gomes presented on upcoming changes to Ontario's employment and labour laws. Major changes include increasing the minimum wage to $15/hour by 2019, expanding personal emergency leave provisions, and strengthening unionization processes. Employers need to review policies, communicate changes, and ensure compliance with the Employment Standards Act and Accessibility for Ontarians with Disabilities Act to avoid hefty penalties. Beneplan HR Advisory services have assisted over 140 clients with issues like benefits administration, terminations, and compliance requirements. Keeping informed of legislative changes and improving employee communication were emphasized.
Beneplan Annual HR and Employment Law Workshop - Yafa Sakkejha PresentationBeneplan
The 2017 Annual HR & Employment Law Workshop agenda includes sessions on benefits, employer responsibilities, an employment law update, health studies, wellness, and door prizes. A special meeting will discuss voting on a chair of the board and results will be emailed. The Benefits Future Lab presentation will cover integrations with HR software, benefits tools, an employee assistance program, personalized prescriptions, and HR advisory services.
The 2017 Annual HR & Employment Law Workshop agenda included sessions on benefits, employer responsibilities, an employment law update, wellness at work, and door prizes. A special meeting was held from 10:00-10:30am to introduce the chair of the board, allow for Q&A, and hold a vote with results sent by email later. From 10:30-11:00am, the Benefits Future Lab presentation covered integrations with ADP, BambooHR, Beneplan HR Toolkit, an employee assistance program, and personalized prescribing.
2016 Beneplan HR Workshop - Marijuana in the Workplace and Travel Insurance ...Beneplan
This document discusses various topics related to marijuana, including:
- Marijuana is already widely used in Canada despite its legal status.
- Employers have a duty to accommodate medical marijuana use by employees.
- Recreational marijuana use in the workplace could be restricted by policies limiting non-medical use.
- Travel insurance may cover costs associated with cancelled trips due to certain covered risks like medical emergencies, but pre-existing conditions are often excluded.
Our 2015 Annual Report 2015 highlights our work towards our goal of helping small and medium sized enterprises maintain the best employee benefits at the lowest possible costs.
Selected Highlights:
Total co-operative patronage dividend $917,000
Maximum patronage dividend: $53,905.44: Average dividend: $8,016.74
Introduction of Pharmacogenetics to our Benefits Offering
Members subscribing to the Reformulary system experienced a 17% drug usage reduction and an average rebate of 2% of drug claims
NSARG Meeting Feb 18 2016 - Pharmacogenetics in Benefit Plans - Personalized ...Beneplan
Pharmacogenetics is the study of how medication responds to an individual's unique DNA. Personalized Prescribing Inc is a new employee benefit which provides coverage for pharmacogenetics testing at a cost of $1-$3 per employee, per month (depending upon the demographics). zahra@personalizedprescribing.com
NSARG Presentation - The Beneplan Co-operative - February 18, 2016Beneplan
- Benefits Legal Update
- How to negotiate premiums like a Fortune 500 company
- Trends: Benefits in the year 2020
The Beneplan Co-operative is a member-owned buying group for employee benefits. Members receive refunds on premiums when their claims are lower than their premiums, as patronage dividends.
Beneplan - Benefits Law & Admin Workshop - December 1 2015 - Mississauga, Ont...Beneplan
This presentation reviews the following materials:
- How Canadian group health insurance is priced
- How benefits renewals are calculated
- The guidelines for clean plan administration in order to avoid lawsuits
- Benefits Law and Long Term Disability lawsuits against employers, how to avoid them
- Wellness in the workplace
- Personalized Prescribing Inc (P3) - personalized medicine and genetics in Canadian benefit plans
Beneplan Presentation to EO Ottawa - Legal, Premiums & Genetics - April 2015Beneplan
The document discusses several legal issues related to employee benefits. It provides examples of cases where employers encountered issues by not properly following regulations around covering employees on sick leave or disability. Key takeaways include not terminating coverage for sick employees, ensuring all eligible employees are enrolled on time, and getting proper approval when wanting to cover someone who is not actively at work. It also discusses how insurance premiums are calculated based on claims experience and factors like costs and inflation. Overall it aims to educate employers on properly managing their employee benefits plans.
Employment Law and Disability Insurance (Davies Howe Partners LLP)Beneplan
Toronto-based law firm Davies Howe Partners LLP presented employment and disability insurance law case studies at the Beneplan Plan Administrator's Workshop, November 21, 2014.
Beneplan: Presentation for EO Ottawa Nov 18 2014 - Employee Benefits in OntarioBeneplan
The document is from The Beneplan Co-operative, a benefits cooperative for small and medium enterprises in Ontario, Canada. It discusses strategies for reducing benefit premiums without cutting coverage, including obtaining refunds from insurers if claims are lower than premiums and leveraging programs that provide discounts on insurance and costs like premium tax rebates and drug rebates. It also explores non-insurance benefits like improving employee morale at low costs.
Beneplan Benefits Admin Workshop - November 2013Beneplan
Canadian benefits administration can be confusing. There are rules, regulations, exceptions, and all sorts of things to remember. Beneplan holds an annual workshop for its members to help them navigate the insurance system.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
Key highlights include Microsoft's Digital Transformation Framework, which focuses on driving innovation and efficiency, and McKinsey's Ten Guiding Principles, which provide strategic insights for successful digital transformation. Additionally, Forrester's framework emphasizes enhancing customer experiences and modernizing IT infrastructure, while IDC's MaturityScape helps assess and develop organizational digital maturity. MIT's framework explores cutting-edge strategies for achieving digital success.
These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
- Framework flexibility and automation.
- Enhanced alignment and strategic focus across the organization.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdf
2016 Beneplan HR Workshop - How health & dental premiums and renewals are calculated
1. Gaining a better understanding of how
Employee Benefits quotes, renewals and
pricing are formulated.
Presented by: Vince Principato B.A., President Beneplan Inc
Renewals, Shopping the
market and Lowball
Quotes….How does it all
really work?
2. To simplify how Extended health care (EHC) and dental premiums pricing
are established.
Breaking down how renewals are calculated for EHC and Dental
Identifying “renewal factors”for EHC and dental
Shopping the market
The truth on how Brokers and Insurers prepare quotes:
“Marketing Discounts” = “Lowball Quotes”
“The IBNR Marketing Discount Game”
Goals and Objectives
3. Experience Rated Benefits vs Pooled
Benefits
Experience rated benefits are benefits that are priced based on the usage
patterns (claims) of your group. This type of claim has a certain amount of
reoccurrence or predictability, and is usually a small amount of money, but
occur frequently.
Examples of experience rated benefits are Prescription Drugs, Dental, Vision
care, Paramedical, Orthotics, Orthopedic shoes and compression hose.
Pooled Benefits are benefits that are not easily predicted, are usually large
dollar amounts, and don’t occur very often.
Examples of pooled benefits would be Life Insurance, Accidental Death and
Dismemberment, Long Term Disability, and Critical Illness.
This presentation will focus primarily on the Experience Rated Benefits and the
pricing associated with them.
4. Everyone in this room has an Employee benefits plan, and at some point
has experienced an increase or decrease in premiums.
Some of you may completely understand why an increase is warranted,
while others may not be sure.
Others still may be afraid to ask how it all works.
Employee benefit renewals are not rocket science, even though many
carriers and brokers make it seem so.
Benefit “Renewals” are nothing more than an exercise in budgeting and
projections to arrive at a new price/rate.
How many of you participate in the budgeting process at your respective
companies or households?
Today’s Situation
5. Pretend for a moment that you are accountant/controller for your
respective company. You have been asked by the CFO to prepare the
budget for Hydro costs in 2017.
What is the first thing you would do?
First, you would view the historical data to establish what was spent on
hydro over the last few years.
Let’s assume that you find out that :
3 years ago (2014) your company spent $50,000 annually in hydro
2 years ago (2015) your company spent $55,000 annually in hydro
This past year (2016) your company spent $57,500 annually in hydro
Using “Hydro” as an Analogy for The
Employee Benefits Renewal Process?
6. What would you Budget for Hydro for 2017 based on the previous Hydro figures?
$45,000?
$50,000?
$56,250?
What would you Budget for Hydro for 2017
based on the hydro figures of the past?
This is referred to as a “Weighted Average”
$56,250 is a good answer Why?
Here’s why….
(2014) $50,000 * 10% = $ 5,000
(2015) $55,000 * 20% = $11,000
(2016) $57,500 * 70% = $40,250
=$56,250
7. The first part of this exercise is designed to determine what hydro usage patterns
were established in the past, and to calculate the weighted average.
We must predict future hydro usage for the 2017 year based on our historical
data/usage patterns. How?
More data is required. Events that could effect our usage patterns in the future
should be considered:
• Possible Hydro rate increases
• Upgrading less efficient machinery/technology
• Adding more machinery and/or more personnel
• Expansion or reduction in production
• Any additional factors pertinent to daily operations
Understanding how to project
Historical Data
8. Lets assume the following:
You will be removing an old piece of equipment from the plant operations and
replacing with a newer more efficient unit, it is estimated this will reduce the hydro
usage by 5%
Ontario Hydro announces a rate hike of 3% for 2017
Assume that there is another 10% administration fee on top
Based on these factors what would you “Project” your Hydro costs to be for 2017?
$50,000?
$55,000?
$60,544.69?
Hydro Usage - Projection factors for
upcoming year
9. $60,544.69 would be the Hydro cost projection, but how did we arrive at
this amount?
Let’s do the math:
3 year Weighted Average (2014, 2015, 2016 based on 10% 20% 70%) $56,250.00
Removing old equipment (-5% savings) ($56,250 * .95 = $53,437.50) $53,437.50
*$53,437.50 represents the new adjusted weighted average amount
Hydro rate increase of 3% ($53,437.50 * 3% = $55,040.63) $55,040.63
Administration fee of 10% ($55,040.63 * 10% = $60,544.69) $60,544.69
Therefore Projected Hydro Cost for 2017 would be $60,544.69
$60,544.69 Hydro Cost Projection for 2017
10. Historical Data aka Dental Claims Usage
3 years ago (2014) the Dental claims usage was $50,000
2 years ago (2015) the Dental claims usage was $55,000
This past year (2016) the Dental claims usage was $57,500
10% of $50,000 = $ 5,000
20% of $55,000 = $11,000
70% of $57,500 = $40,250
$56,250 is the 3 year weighted average
Now take “Hydro” out and replace with “Dental”
11. Renewal Factors
Company implements a deductible on plan which represents a 5%
reduction
The Dental Fee guide goes up by 3% for 2017
The Administration fee is 10%
Dental Renewal Factors
12. $60,544.69 is the Dental cost projection. How did we arrive at this amount?
Let’s do the math:
3 year Weighted Average Claims (2014, 2015, 2016) $56,250.00
Add a deductible to existing plan (-5% savings) ($56,250 * .95 = $53,437.50) $53,437.50
*$53,437.50 represents the new adjusted weighted average amount
Dental Fee Guide increase of 3% ($53,437.50 * 3% = $55,040.63) $55,040.63
Administration fee of 10% ($55,040.63 * 10% = $60,544.69) $60,544.69
Therefore the Projected Dental Cost (Premiums) for 2017 would be $60,544.69
$60,544.69 Dental Cost Projection for 2017
13. Deep Discounting by Romancing Brokers
How many of you have received a phone call from a broker claiming “I can
save you 20% on your current benefit costs if you switch your plan to me”?
Has anyone ever asked “How can you do that”?
What responses have you received?
• Special arrangement with the Insurance company
• Charge lower fees
• I shop the entire market
• Part of a larger group
How many of you believe the reasons above?
14. All of those reasons can be true,
but……..
These are possible ways that a Broker may be able to lower benefit costs,
but the vast majority of the time there is one main reason Brokers can
obtain lower rates:
“Marketing Discounts” aka “Lowball Pricing”
Marketing discounts are discounts that are applied by the insurance
companies to their Employee Benefit quotes in order to entice businesses to
buy their Benefit plans and leave their existing carrier. What the broker
doesn’t mention is that this rate will be increased to a much higher rate
upon renewal, in order to recoup the insurance company’s “lost” revenue.
How do you know if a quote you have received from a Broker is “real” or
simply “discounted” enticing you to move?
You need to ask the right questions!
15. Renewal Factors: Questions to ask a Broker
once they have given you a quote
Whenever you receive a quote from a Broker you should be prepared to
ask the following questions:
1. What is the “Target Loss Ratio” for the EHC and Dental?
2. What are the “Incurred But Not Reported Reserves” (IBNR) for this quote
and how are they calculated?
3. What are the “Trends” that will be applied to the EHC and Dental?
16. What do all of the terms above really mean?
Target Loss Ratio (TLR):
Means overhead expense, margin, fees or expenses. It is expressed as a
percentage and is arbitrarily set up by the insurance carrier based on the size of
the group. Typically, the larger the group, the more attractive the TLR. Target
Loss Ratios can range anywhere from 70%-85%.
Assuming a TLR of 75% means that for every dollar you pay the insurance
company in EHC or Dental premiums, the carrier anticipates paying $0.75
towards claims and keep $0.25 for themselves for fees. This is a 25% overhead
expense but it actually represents a “margin” of 33%.
25:75 is the ratio which works out to 1:3. This equals 33%
What does it all mean?
17. Questions to ask your Broker once
they have given you a quote…….
Incurred But Not Reported Reserves:
This refers to a fund of money the insurance carrier will need to set up that you pay
through your premiums, to pay for claims that will happen after you have
terminated coverage with that carrier.
Assume you were to terminate your plan with ABC Insurance on December 31st 2016 and Jan
1st 2017 start with a new carrier, XYZ. In the month of January and February 2017 your old
carrier (ABC) receives some outstanding claims from your employees that were “incurred” in
December 2016 but “not reported” until January and February. These claims must be paid by
the old carrier.
But where does the old carrier get the money to pay for these claims?
The IBNR Reserve!
The “Incurred But Not Reported” reserves fund is built with a percentage of the premiums
that the carrier has been charging you.
18. Questions to ask your Broker once
you have received the
quote……..continued
What is ``Trend`` or trending, and how is it applied to EHC and Dental
benefits?
Trend refers to the difference in the amount that a claim is anticipated to
cost tomorrow vs what is cost today, in simple terms “inflation”
Example: if a dental cleaning today (2016) cost $100 and the “trend” is
projected to be 5%, then this same dental cleaning in 2017 will be estimated
to cost $105
Most insurers typically estimate dental trend between 7%-10% annually
and between 11%-15% annually for EHC
19. Now lets put it all together and crunch
the numbers
The objective of this next exercise is to apply all of the information we
learned today and use it to determine which quotes you receive are quoted
properly and which have been discounted in order to win the business.
Example: ABC Company goes out to market to solicit quotes. Assume the
following:
Dental Claims Target Loss Ratio = 80% Trend =5%
$70,000 in 2014 * 10% = $ 7,000
$81,000 in 2015 * 20% = $16,200
$87,000 in 2016 * 70% = $60,900
3 year weighted average =$84,100
20. Based on the $84,100 in dental claims what
would a Bona Fide Dental quote look like?
$85,000 in Dental Premiums annually?
$90,000 in Dental Premiums annually?
$110,381 in Dental Premiums annually?
Lets do the math
$84,100 * 5% trend = $88,305 / 80% Target Loss Ratio = $110,381
Therefore if the Dental Premiums quoted by the insurance carrier are lower than
the $110,381 this usually means that a “marketing discount” has been applied. The
bigger the difference the bigger the discount, and more importantly the bigger the
increase that will be required on renewal to recoup that discount.
*same calculations for EHC except the trend figure is higher anywhere between 11%-15%
**Please note under The Beneplan Employee Benefits Cooperative the Dental Premiums quoted would be approximately
$100,000, with a savings of over $10,000.
$110,381 would be the
correct answer, but why?
21. The “IBNR Marketing Discount Game” is really just a hidden time delay
claims payment program, insurance companies use to create “Marketing
Discounts”.
In any given claims year, there are claims incurred late in the year and
reported early in the next claim year. For example, a dental claim that was
made in December 2015 would actually be reported in January or February
2016.
This “time delay” is one of the ways insurance companies create the
“marketing discounts”.
Insurance companies will discount the claims experience by estimating
what the “time delay” claims are going to be, and then base their
premiums on that lower amount. This results in the discounted premiums,
and is the enticement for you to get on board with the new carrier.
Once you get to the first renewal that time delay no longer applies and
now the discounts that were applied need to be recouped! This means big
increases.
The IBNR Marketing Discount Game
22. You go to the dentist’s office for your 6 month cleaning
and scaling. After paying for the service, your Dental
Clinic Administrator fills in a claim form and sends it in
to the insurance company.
The Journey of a Claim
The insurance company processes the claim.
The payment arrives in your bank account.
23. The claim travels through accounting systems
until it is logged.
Finally, the claim is filed and closed.
The Journey of a Claim
24. When Beneplan goes to the market we ask insurance companies to provide
the“Renewal Factors” for their respective quote (ie Target Loss Ratio, Trend, IBNR)
Beneplan performs all of the calculations to estimate (based on group’s claims
experience and the declared “Renewal Factors”) what the potential renewal will be.
When Beneplan generates a quote for a client based on the Beneplan Employee
Benefits Cooperative model, we are not allowed to use “marketing discounts”.
Beneplan does not play the IBNR Marketing Discount Game.
Beneplan is completely transparent and accountable!
When Beneplan prepares a quote, we use your company’s actual historical data and
prove savings through comparative pricing for those years. We also project future
costs realistically.
How Beneplan is different…
25. What happens when the “Discount” is
so enticing?
Imagine receiving a quote that has been “discounted by 20%-30% representing
$10,000 or even $20,000 in annual savings, what do we do?
If Insurance Carriers are willing to offer ridiculously low rates, then…
TAKE IT AND RUN…..but do it all through a broker you trust!
Brokers have the ability to solicit quotes from the market for you and place the
business with whichever carrier is willing to give you those rates.
Beneplan will also “do the math” for you, illustrating what the potential increase
on the first renewal could be. This way you are well aware of what the discounts
are and what could happen on renewal….No Surprises!!!
The Good News: If large increases occur and Beneplan is still your Broker, we can
simply bring you back to the Beneplan Employee Benefits Cooperative.
Truly a “win win” situation.