Offering employees quality and affordable healthcare is a great benefit, but it can weigh heavy on your bottom line. At FD Insurance Agency, our FreedomChoice Plan saves our customers on average around 40 percent on their insurance premiums. Some customers have saved up to 80 percent! How can we do this?
- You choose the benefits your employees receive.
- Your business signs up for a high-deductible plan which will, in most cases reduce the cost of your premiums.
- The money you save will be deposited into an account that you will use to offset the healthcare costs incurred by your employees.
- FreedomChoice will supplement your current fully insured carrier.
- You only pay for the medical services used, not all of the what-ifs. It also comes with less risk than being self-funded.
- We can also help you with fully insured and self-funded policies.
This is a more traditional group coverage option. We work with a variety of major carriers.
- Your business is responsible for paying the premium to the insurance carrier.
- Your premium rates are locked in for one year and are based on the number of employees that are enrolled each month.
- Monthly premiums can change throughout the year if the number of employees that are enrolled changes.
- The insurance carrier collects the premiums and pays the healthcare claims based on the coverage benefits outlined in the policy.
- Employees and their dependents are responsible for paying deductible amounts and co-pays required under their policy.
The employer operates their own health plan instead of going with a fully insured plan with an insurance carrier.
Why would you choose a self-funded policy for your business? It can save the profit margin that an insurance company adds to its premium. However, a self-funded policy also comes with big risks. You can find yourself in a situation where you incur more claims than you expected, which means you have to pay in more than you budgeted.
There are two main costs you need to consider:
- Fixed costs - Administrative fees, stop-loss premiums, and any other fees that are charged per employee.
- Variable costs - Health care claims. These costs will vary month to month based on the services used.
To limit your risk, some employers will use stop-loss or excess-loss insurance. This will reimburse the employer for claims that exceed a certain level. This type of coverage can be purchased to cover huge claims on one person or to cover claims that exceed your budgeted level for the entire group.
For more information and a FREE quote, call FD Insurance Agency at (316) 927-2922 or fill out our convenient online form.
In the busy world we live in, you have enough things to worry about, insurance doesn't have to be one of them! Let FD Insurance take that off your plate!
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