Group Health Plans California
Why the Solana Solution Works
Reduce your Group Health Insurance Premiums by as much as 30-50% while maintaining benefits!
For the past 15 years employers have been faced with double digit increases in cost providing healthcare to their employees. Estimates from the National Compensation Survey (NCS) indicate that the average cost for the private employer to provide health care insurance has risen from $1.03 per hour worked in March 1999 to $2.00 per hour worked in March 2009, a change from 5.4 percent to 7.3 percent of total compensation.
A major reason that insurance premiums continue to skyrocket is because we have a large aging base that continues to live longer. In effect, we all have to pay for the 85 year old that is taking $1,000 in meds every day. However, Solana Insurances Services offers a new way for small and medium sized groups (2 to 350 EEs) to look at their insurance needs and by partnering with the insurers, a more efficient outcome can be obtained, with much lower premiums.
Solana does this by showing the employer that in every group, regardless of size, 50-80% of the employees never use their plan, or spend very little. Because of this proven fact, it doesn’t really makes sense to pay the high premiums for HMO and PPO plans which many carriers are charging. The employer has become used to paying high premiums as if everyone in the group is hitting their deductibles and max-out-of-pocket when year after year only a small portion of the employees ever do.
A 2004 study by Blue Cross of California showed that 68% of Californians spend less than $150 annually. A similar study concluded in 2008 by Kaiser Family Foundation found that 85% of Americans spend less than $100 on their medical services per year. Because of this, it makes much more sense to buy a plan with a higher deductable which offers a reduction in premium of up to 50%. The employer keeps the same plan for their employees and manages the difference between the employee’s contributions and the carrier’s deductible and max-out-of-pocket.
The problem with this approach in the past has been managing these monies. That’s where Solana and its partner come in. Solana’s partner, a third party administer (TPA) has been doing this for over 17 years, with over 3,600 companies. (This is what large groups have been doing for over the last 20 years) The employees will continue to pay their usual co-pay and deductibles as they have in the past and the small minority who exceed their co-pay and deductibles will have those additional medical expenses paid by the excess funds available through the reduced premiums and administered by the TPA. There is an additional “Stop-Loss” provision built into the plan to insure the company against catastrophic losses.
For more information on group health plans california and how you can reduce your Health Insurance costs while maintaining or improving employee benefits and without incurring additional liability, please call Solana Insurance Services today- 949-285-7209 or email us at email@example.com.