Today, with the spiraling costs of health care benefits, employers are looking for new ways to offer their employees a quality health care program at an affordable price.
The most common questions asked are:
• What is the best funding method to purchase our company’s benefits?
• Should we consider an HMO, PPO, HSA?
• Do we need to upgrade our benefits?
• What cost containment measures really produce savings?
• How can we reduce the cost of fringe benefits?
The answers to these and related questions are not easy to find. Many employers have discovered that a complete review of all fringe benefits has enabled them to maintain or increase benefits and lower or maintain current costs.
Insured Medical Plans
Pacific Pension & Benefit Services, Inc. has a close working relationship with several well-known, financially sound insurance companies. These companies have confidence in the way we select our clients and administer their benefits. When a fully insured program is best suited for a client, PPBS can obtain the most competitive rates available from a number of the best group and individual insurance carriers. The client has the confidence of being insured by a large national company while dealing almost exclusively with a local administrator who knows each client and his or her specific needs.
The goal of a partial self-funded plan is to limit the maximum expense experienced under the plan to a level at or below the expense of a fully insured plan. In this way, any savings are immediately enjoyed by the employer.
The key to partial self-funding is insuring only those large, unpredictable losses that can cause a severe financial crisis for a company. The predictable losses are, to a large extent, self-insured with reasonable stop loss coverage both on an individual (specific losses) claim basis and on total claims liability (aggregate losses).
The result should lower administrative costs and cause less drain on available cash. In years where experience is good, the partially self-funded plan helps keep money in the employer’s bank account. Funds which are usually held by an insurance company for future claims (reserves) are now earning interest for the employer.
For additional information or quotes please contact: