Insurance Advisors
Presented 10/18/2018 by Lloyd Coleman
801-432-5012
Health Insurance
concepts and solutions for
Considerations
Growth expectations
Prioritize cost, quality, satisfaction and recruiting
Implement strategies that will support growth and goals
Consider suitability of self-funding for current or future strategy
Help employees and candidates recognize value of benefits
Goals
Provide health insurance at no cost to employees for premiums or medical services
Control costs of providing medical insurance
Medical Plan Design
Discussion Items
Insurance obscures cost of health care to consumer
HSA plans designed to expose cost and promote consumerism
Fully funding employee portion reduces incentive to be good consumer
Fully funding employee portion creates high satisfaction and retention
Only a small portion of HSA funds are used for medical expenses each year
Funding Options
HSA (health savings account)
HRA (health reimbursement arrangement)
Employee owned account
Annual contribution limit
Must be paired with an HSA qualified health plan
Employer contributions are immediately vested
If fully funded annually, most won't be used for medical and will increase employee account balance
Over funding may not be recognized as benefit
Provides some motivation for consumerism
Employer owned account
No contribution limit
No health plan design limitations
Employer can offer to pay for all employee expenses, but only funds actual claims
If it fully funds expenses there is very little motivation for consumerism
Regence $4,000 hsa plan - par network
Monthly Premium
Monthly Premium
HSA Funding
HRA Funding*
Monthly Total
Monthly Total
Annual Total
Annual Total
January 2019 rates - current plan design and enrollment
$15,932
$13,447
$29,379
$352,548
$3,250
$15,932
$19,182
$230,184
Annual Savings
$122,365
(34.7%)
*Assumes 25% of potential funding is used
Plan with HSA
Plan with HRA
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