Is it possible for our organization to reduce health plan costs while maintaining the same level of coverage for employees?
Employers may reduce the fixed cost of insurance by increasing the deductible of their High Deductible Health Plan (HDHP) and funding a health reimbursement account (HRA) to cover the employees’ increased exposure.
With USI’s guidance, a High Deductible Health Plan (HDHP) paired with an HRA can lower your organization's fixed cost of insurance by 25-30% for a net premium savings of 5-10%.
We’ve estimated the financial impact for you. Feel free to update the assumptions.
- Fixed cost of insurance reduced by approximately 25-30%
- Custom-built health benefit communication strategy
- Assisted integration of telemedicine, transparency tools, and interactive decision-support platforms
Fully insured programs with low deductibles and copays are inefficient due to added costs from insurance carriers for retention, risk-sharing and profit. Traditional copay plans provide insurance for high severity/low frequency claims, adding unnecessary retention and risk charges for these types of benefits, while offering significantly less transparency into first-dollar claims.
Typical HRA utilization is less than 50% of total exposure, resulting in reduced costs to the employer.
USI assists employers in choosing an appropriate vendor to administer the HRA, as well as FSA, DCAP, COBRA administration, among other services, including:
- Actuarial evaluation of multiple plan offerings
- Custom-built health benefit communication strategy
- Assisted integration of telemedicine, transparency tools, and interactive decision-support platforms
- HRA Vendor Selection
I’d like to explore further how a high deductible health plan (HDHP) paired with a HRA can help our organization lower benefit costs and maintain the same level of benefits for employees.
In order for USI’s underwriting experts to perform an analysis, we will need just a few pieces of information, including copies of your organization's last two plan renewals and current plan design.