Presentation on theme: "Allied Funding Advantage How Alternative Funding Works."— Presentation transcript:
Allied Funding Advantage How Alternative Funding Works
Do your group health clients want to receive a refund for being healthy? YES! Alternative Funding is the answer!
Fully Insured Risk Bearer is the Insurance Company Premium covers all risks and costs Self Insured Risk Bearer is the Employer Claims are paid from Employer funds Employer pays for claims administration
Also called Partial Self-Funding Employer is still the risk bearer Employer purchases Stop Loss Insurance to protect against high claims
Specific Stop Loss Claims paid by carrier when an individuals claims exceed a set dollar amount Aggregate Stop Loss Claims paid by carrier when the groups total claims exceed a set dollar amount Employers risk minimized
55% of all companies are fully or partially self funded Only 13% of employers with 200 or less employees are self or partially funded Staying Power Employers that self fund remain doing so on average of 3 to 5 years Opportunity Market is untapped for small group employers Savings Chance for employers to save and take control of their health plan
An alternative funding plan for groups of 10 to 99 Limits employer risk from self-funding Allows employer to save significant dollars Monthly costs may be less than fully-insured premiums Potential for refunds at end of plan year The only risk is not getting a refund at the end of the year!
Monthly Costs Employer makes monthly contributions for each of these three items:
Stop Loss Insurance Covers both Specific and Aggregate Coverage Costs vary with plan benefits selected Funding Advantage has set levels for Specific & Aggregate to keep sales process simple Admin & Sales Allied claims paying and reporting expenses Agent & General Agent Sales Compensation
Claim Fund – Employers Money Employer contributions used to fund expected claim costs MAX funded plan Employers MAXIMUM claim costs for the year Monthly contributions are 1/12 of this annual cost each month MAX funded - Employer will NEVER be charged more than this for claims Claims Fund money left over is the employers!
Claim Fund Questions Accommodation When claims exceed money in claim fund – Insurer loans employer money Reporting Detailed monthly reporting showing claim fund activity Plan Year and Claims Run Out Plan year is 12 months Claims incurred during plan year are payable for 9 months past end of plan year At end of the 9-month run-out – all remaining claims funds belong to employer! No hidden terminal liability costs Funding Advantage Monthly Costs
ERISA plan is the plan of benefits for the employee Funding Advantage Options Premium Advantage Plans Traditional PPO HSA Qualified Plans Indemnity Freedom Plans No networks – no penalties True freedom of provider choice No balance billing
Advantages for Employer Limits the risk of self funding Lowers monthly costs Healthy groups can receive LARGE refunds Wont be subject to the ObamaCare rate shocks that will happen in 2014
Advantages For Agents Available for small groups 10 to 99 Not subject to MLR regulations No restrictions on Compensation! Compensation paid on full monthly costs. Take advantage of group trend toward self-funding with a simple, flexible plan
Phone: (888) Fax: (913) Quote Web site: The RIGHT Benefits. The RIGHT Price. GET YOUR ADVANTAGE TODAY!