IMPACT KRF BENEFIT PLAN Presented By: Scott Snowden Snowden & Associates, Inc.

IMPACT KY RETAIL INDUSTRY ENDORSED BY: KENTUCKY RETAIL FEDERATION Mass purchasing power Discounted rates for member firms Local personalize service The IMPACT was established over 20 years ago to provide comprehensive employee benefits to members of participating trade associations. Due to the mass purchasing power of this fully insured trust, even small businesses are able to take advantage of a high level of quality benefits at costs normally available only to large employers. Currently, there are over 900 participants in the program covered for benefits

PRODUCTS AVAILABLE  Health Insurance (Carrier Anthem)  Dual choice plans  PPO and Health Savings Account Plans  Excellent national network of physicians and hospitals  Group Term Life An inexpensive way for an employer to provide basic life coverage during and employees working years. Volumes of insurance can be scheduled based on percentage of compensation, job title or flat amount for all employees

PRODUCTS AVAILABLE (CONTINUED) Group Long Term Disability Benefits up to a monthly maximum of $8,000 “Own Occupation” definition available during the first two years of disability Benefits available for partial disability Group Short Term Disability Benefits up to a weekly maximum of $800 Benefits begin on the eighth day for an illness; immediately for an accident Benefits are payable for up to 13, 26 or 52 weeks Maternity coverage

PRODUCTS AVAILABLE (CONTINUED)  Dental  Plans available as employer paid or voluntary (payroll deducted)  Orthodontia offered as a rider  Strong provider networks  Administrative Compliance Services Plan administration and billing services are provided by the trust administrator. They also offer COBRA and cafeteria plan administration.

POSITIONING Under health care reform, as of 01/01/14 the small group market (outside of association plans) will move to a modified community rating model. This means that premiums would no longer be partially based on your group’s claims, but rather on a blended risk associated with the small group pool. Basically, this means that you have no opportunity for discounting if you are a healthy to average risk group. Under community rating, the healthy groups subsidize the less healthy, thus increasing pricing for a large percentage of groups. Also, the reform guidelines for non-association plans will change the rating spread (top to bottom) from a 1-5 ratio down to a 1-3 ratio. This should benefit older age brackets, but the younger age brackets could see dramatic premium increases.

IMPACT KRF STRATEGIES After a lengthy analysis of the reform law, the IMPACT KRF has received guidance from legal professionals on how to fit in to the Health and Human Services Department’s definition of a bona fide association and be viewed as a single large group plan as a Multiple Employer Welfare Arrangement (MEWA). This enables us to continue to base rates on your group’s risk and continue with the current ratios. This should make the IMPACT KRF program an excellent fit for any average to better than average risk group. It will be one of the only avenues for small groups to obtain any discounting for favorable risk.

IMPACT KRF STRATEGIES (CONTINUED) In order to comply, we will have to require the following of every participating group: Compliance with large group laws even if you have fewer than 20 employees (COBRA, Medicare will be secondary payer, Mental Health Parity, Autism, etc). IMPACT KRF has a third party administrator that will offer the related administrative services for you to stay in compliance. Our office will assist you in understanding these laws. Uniform renewal which is in July of each year, starting in Compliance with the HHS provisions will require that we renew all participating IMPACR KRF groups renew together. This will result in a short year for some. For example, if you renewed or joined the program in January, you will renew again in July Like industries will be required. Participating firms will need to have an approved retail related SIC code. Minimum group size will be two employees. It is our belief that the savings opportunities for IMPACT KRF participants will far outweigh the compliance burdens. The exception to this could be high risk groups. We will be able to shop the various insurance carriers in the marketplace for you and find the best fit, either in or out of the IMPACT KRF.

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