Employer Driven Health Plans for Small to Medium Sized Businesses in Orange County
Solana Insurance Services has been showing California employers in Orange, Los Angeles, and San Diego Counties how to save on the cost of group healthcare since 1998. We do this by showing employers how to create an Employer Driven Health Plan that puts them in control of the plan creation and spending.
The simple fact is that group health insurance premiums are going up in California and the rest of the country by double digits. The only option a business owner has had to avoid the premium increases is to reduce their employee’s benefits or pass the cost increases down to the employee. Some employers have been forced to eliminate their healthcare plans entirely. However using the Employer Driven Health Plan approach, an employer has the opportunity to reduce their healthcare cost without lowering benefits.
Why it Works
In every group of employees regardless of the size, 50-70% of employees won’t use their health plan or use it so little that it is of no significance to the plan. A much smaller group within the company seldom uses the plan except for a sprain, a prescription, or some other incidental treatment. Most importantly, only a very small percentage (4-7%) of employees within the group may use a great deal of health care for a chronic condition, an accident, a pregnancy, etc. This small percentage of employees will not impact the potential savings to the plan.
Rather than wasting premium dollars on unused coverage, employers are free to use those dollars on employee claims if the claims actually occur.
This approach, known as an Employer Driven Health Plan, has proven to be successful based on actual claims data collected over the past 10 years by Kaiser Permanente and Blue Cross of California.
How it Works
The employer enrolls in a high deductible plan offered by one of the state’s largest insurers with the assistance of one of the nation’s largest Third Party Administrators (TPA). Normally the employer will remain with their current insurance carrier if they are satisfied with that insurer’s service, but they have the option to switch to any plan and carrier that meets their employee’s needs and the budget of their business.
Solana’s Third Party Administrator works with Anthem Blue Cross, Blue Shield of California, Humana, Healthnet, Aetna, United Healthcare, and Kaiser Permanente. On behalf of the employer, the TPA will provide the benefits under the High Deductable Health Plan so the plan works the way employees have become accustomed to with the benefits they need.
The result is a healthcare plan that has a much lower premium which in most cases saves a company thousands of dollars right off the bat.
Then claims from the 4-7 % of employees that use the plan chronically are paid for by the employer from the funds that were saved from the reduction in premium. There is an additional “Stop-Loss” provision built into the plan to insure the company against catastrophic losses.
Call Solana Insurance Services today to schedule a 30 minute presentation in your office to find out how you can learn about Employer Driven Health Plans. California Businesses can save 25-50% on group health insurance costs while maintaining or improving benefits. Call 949-285-7209 firstname.lastname@example.org
Solana Insurance Services, Inc.
3700 Newport Blvd. #309
Newport Beach, CA 92663