easy to understand cost savings strategy combining mjor medical insurance and "3rd generation" GAP insurance

1. Saving Employee Benefit Program
The “Insured HRA” Plan

2.  WE HELP INSURANCE BROKERS
prospect, sell and retain more
business and make more money!
 WE “WHOLESALE” ONLY.
3 variations of medical “GAP”
insurance.
 WE ARE MARKETING EXPERTS.
20+ years of successful Agency
building. DICK
CHELTEN, CL
U, ChFC, RH
U

3.  How to stay ahead of anticipated increases?
 What to do about an aging workforce and early
retirees?
Is there a strategy that will reduce costs but
maintain your current benefit levels?

4. Options for Employer Groups
Do nothing, hope for the best, then watch
your insurance costs go up year after year.
Implement risky “self-funding”
schemes, hoping your claim costs are low
and your monthly cash flow is sufficient.
Or...
Use a new, safe strategy to guarantee
savings without risk…And still
maintain benefits…

5. The “INSURED” HRA Strategy
INSURED
High HRA
Deductible
Plan

6. Two Easy Steps
Modify current benefit plan to a
“High Deductible” (4k - 5k) Health
Insurance Plan
Result: Immediate savings on your annual cost of insurance
Add coverage
This Supplemental insurance plan covers the increased deductible and coinsurance
Keeps out-of-pocket employee expenses

7. MAJOR MEDICAL + INSURED HRA
 Equivalent coverage to current
plans
 Same employee out-of-pocket
expenses
 Lower annual premium costs
 Stabilized annual insurance
increases
YOUR SAVINGS!
 Typical annual savings up to
$2k per employee! Combined plans cost less
with same coverage!

8. Similar “GAP” Strategies
 Medicare + “Medigap” Supplemental Plans
 IBM vs. McIntosh-”Component” Based PCs
 Supplemental Dental and Vision Coverage

9. How It Works
 Employees receive two insurance cards; one for Major
Medical Plan and one for the INSURED HRA Plan.
 Employees also receive an information card that tells
providers how to bill for services whenever they receive
medical attention.
 If the service is covered by Major Medical but is subject
to the new high deductible, employee’s bill will be paid
by the INSURED HRA plan.

10. APPROVED
Health plans with $5,000+ in
deductibles/coinsurances.
Health plans where single rate for
HDHP is $100+ lower than current.
Works best with fully insured plans.

11. Sample Case – Employment Services
Current Plan: BCBS CB4 $500 DD / 20% to $1500
Census Status Medical Total
58 Employee $471.11 $471.11
23 2 Person $1,130.67 $1,130.67
10 Family $1,366.19 $1,366.19
91 $66,991.69
Renewal Plan: BCBS CB4 $500 DD / 20% to $1500
Census Status Medical Total
58 Employee $494.39 $494.39
23 2 Person $1,186.55 $1,186.55
10 Family $1,483.18 $1,483.18
91 $70,797.07
Proposed Plan: BCBS CB15 & Insured HRA to $500 Deductible / 20% to $1,500
Census Status Medical Insured HRA Total
58 Employee $320.36 $93.47 $413.83
23 2 Person $768.88 $175.01 $943.89
10 Family $961.09 $248.01 $1,209.10
91 $57,802.61
Proposed Plan: Annual Savings Versus Renewal Plan $155,933.52
This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept
can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan
designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a
quote and savings illustration.

12. Sample Case – Consultant Firm
Current Plan: Health Plus $500 DD / 20% to $1500
Census Status Medical Total
15 Employee $332.28 $332.28
5 2 Person $747.63 $747.63
9 Family $897.15 $897.15
29 $16,796.70
Renewal Plan: Health Plus $500 DD / 20% to $1500
Census Status Medical Total
15 Employee $395.08 $395.08
5 2 Person $888.93 $888.93
9 Family $1,066.71 $1,066.71
29 $19,971.24
Proposed Plan: McLaren POS & Insured HRA to $500 Deductible / 20% to $1,000
Census Status Medical Insured HRA Total
15 Employee $220.52 $84.67 $305.19
5 2 Person $518.22 $159.87 $678.09
9 Family $595.40 $225.54 $820.94
29 $15,356.76
Proposed Plan: Annual Savings Versus Renewal Plan $55,373.76
This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept
can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan
designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a
quote and savings illustration.

13. Sample Case – Auto Dealership
Current Plan: Priority Health $1,000 Deductible / 20% to $2,500
Census Status Medical Total
95 Employee $364.40 $364.40
42 2 Person $619.49 $619.49
96 Family $759.39 $759.39
233 $133,538.02
Renewal Plan: Priority Health $1,000 Deductible / 20% to $2,500
Census Status Medical Total
95 Employee $435.47 $435.47
42 2 Person $740.30 $740.30
96 Family $907.48 $907.48
233 $159,580.33
Proposed Plan: BCBSM SB 4000 and Insured HRA $1,000 Deductible / 20% to 2,500
Census Status Medical Insured HRA Total
95 Employee $198.28 $47.29 $245.57
42 2 Person $475.88 $85.13 $561.01
96 Family $594.86 $119.97 $714.83
233 $115,515.25
Proposed Plan: Annual Savings Versus Renewal Plan $528,780.96
This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept
can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan
designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a
quote and savings illustration.

14. To schedule an onsite appointment
Office: 248-935-5133
dick@cheltenbenefitsgroup.com