Monday, September 14, 2009

Group Health Insurance - "Aggregate Wrap" product - HSAs / HDHP / Aggregate

AMF Approach to Capitalizing on Savings for High Deductible Health Plans / HSAs

AMF is also offering a high deductible "aggregate wrap" product. In some states, BCBS and other fully insured carriers will offer substantial rate reductions for $2,000 through $10,000 high deductible health plan (HDHP) options. Employers are often intrigued by the cost savings (up to 50% for a $5,000 deductible option) but have concerns about claims administration on the deductible portion and the overall liability.

A high quality Third Party Administrator (TPA) can be hired to administer claim payments on the first $5,000 of deductible expense, according to the employer's wishes. A plan document would be drawn to detail the payment of these "discounted" claims. Claims below $5,000 would have the BCBS or ASO discounts applied before payment is made.

AMF can provide a "cap" on the overall liability of the employer's deductible reimbursement portion of the plan. If the deductible is properly priced by the insurer, AMF may be able to guarantee a maximum cost exposure that will not exceed the cost of the carrier's otherwise fully insured renewal. Our insurance will provide the employer with peace of mind to facilitate the cost savings of a high deductible program, without the liability!!!

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