The Affordable Care Act has turned out to be anything but affordable. Health insurance has gone through the roof in terms of cost, and with the employer mandates coming, it looks like getting worse before it gets better – much worse. Fortunately, small firms do not have to offer health insurance to their employees if they do not want to. However larger firms are going to be required to provide health insurance to their employees.
We wanted to talk to an expert, so we are talking to the guys over at Benefits Planning Service. They are an employee benefits broker in Orange County and they specialize in helping companies with 100 or more employees save money with self funded insurance. They are also able to help smaller firms cut costs, but they find that their sweet spot is in the 100+ employees range.
To help our readers out, I’ve asked them a few questions about self-funded insurance and when it makes sense for a firm to look into self funded plans as a way to offer better insurance at a much better price.
Why don’t we hear more about self-funded plans?
We have specialized in self funded plans for decades now because we immediately saw how a company could often save 40% on their healthcare costs by switching to a self funded plans. However, a lot of other brokers do not really push self funded insurance. One of the reasons that they do not is simple – they do not know self funded plans like we do. If you do not know how to write a self funded plan it can be a disaster. Many other brokers simply do not understand self funded insurance and prefer to stick with what they do know.
When should a company look into a self funded plan?
We find 100 employees is pretty much the line that means that you should start looking into a self funded plan for significant savings. Sometimes we can work a plan with less than 100 employees, but as a general rule 100 employees is the line. If your readers’ firms are at 100 employees or more, they owe it to themselves to at least take a look to see if a self funded plan could save them significant money in benefits.
Is is hard to change brokers?
We know that you probably already have a broker. If you are happy with them and you feel that they are earning their commissions by always getting you the best deal, then by all means stick with them. However, if you think you could save more, give us a call. We will look into your current plan and see if we can save you money. If we can’t, we will be honest and tell you that you should stick with your current broker. However if we can save you money, we will walk you through the simple process. It will involve you sending a letter to your current provider, and they will change your provider effective the first of the following month.
To find out more about BPS, click here to check out their website – BPS Self Funded Insurance Plans