Excess Loss


GROUP HEALTH PLAN COSTS AREN'T COMING DOWN!

It may be time to re-think your funding alternatives...

Employer Excess Loss Insurance for employers of all sizes who want to share in the risks and the profits of providing affordable groups health benefits for their employees.

AFFORDABLE: Premium for coverage is about 20 cents for each $1.00 of benefit purchased (+applicable state surplus lines tax)

AGENT FRIENDLY: Pays writing agent a 10% sales commission

BUDGETABLE: Employer knows their maximum risk exposure up front

EXCLUSIVE: Available through Shepler & Fear General Agency

FLEXIBLE: Can be used with any carrier who permits its usage with their product

SIMPLE: Employer uses the services of a licensed/bonded Third Party Administrator (TPA)

SECURE: Coverage issued by an "A" rated/non-admitted carrier through a licensed surplus lines broker

Coverage can be used to supplement or reduce risk exposure for "Self-Funded" group health plans or for fully insured "High Deductible Health Plans" that are wrapped with a "Health Reimbursement Arrangement"


EMPLOYER EXCESS LOSS INSURANCE

Real Life Example
Employer has 50 enrolled employees with 15 enrolled dependent units (total of 75 persons). Currently purchases traditional fully insured coverage (HMO/PPO dual option with "Gold" level benefits). Currently monthly cost is $36,217 per month or about $434,609 annually (Proposed rate increase of 12% will bring annualized cost up to $486,760)

Senario - Employer establishes an "HDHP/HRA wrap" plan (provides 80% HRA benefit up to maximum of $5,200 benefit per year - per employee, x2 for family). Cost considerations:

ANNUALIZED COST OF:
WITHOUT
Employer Excess Loss
Insurance
WITH
Employer Exess Loss
Insurance
High Deductible Health Plan
$191,454
$191,454
Administrative Services Package
$21,000
$21,000
Maximum Paid Claims
$338,000
$169,000
Employer Exess Loss Insurance Premium
0
$34,882
TOTAL COST:
$550,454
$416,336