AN OPEN EMAIL TO ELECTED LEADERS,

PUBLIC OFFICIALS, INSURANCE AGENTS, TAXPAYERS AND UNION REPRESENTATIVES :

My name is Dick Chelten, CLU, ChFC, RHU.  My Michigan based firm, Chelten Benefits Group, wholesales Supplemental Insurance products through Health Insurance Agents here in Michigan and across the country.

Our most popular product today is Medical “GAP” Insurance.  Similar to Medicare’s “Medigap” insurance, Medical GAP Insurance fills “gaps” created by deductibles and coinsurances in “high deductible” Employer Group Health plans. (GAP diagram pdf) 

Here in Michigan, GAP insurance typically saves Employers $1,000 annually for every Employee on their health plans while reducing or eliminating employees’ deductibles and coinsurances!

All this without even changing health insurance carriers!

OK, so why am I writing you today?

Recently, I reviewed a city health plan for a local agent.  I was astounded to see how expensive this plan was in comparison to the most popular plans now being offered in the private sector.  We are preliminarily saving this plan $5,000 annually for every employee it currently covers!  With 900 enrollees, this city can potentially realize $4,500,000 in annual savings!

Do the math about all the governmental workers and their health plans in Michigan and you can see why I am excited as a businessman and a taxpayer.  Yet, trying to get government folks to accept “different” plans has remained just short of impossible.  That was pre Governor Snyder.  Today, the Governor is suggesting Government workers be required to pay 20% towards their health plan costs.  And so, it will be simply “20% or nothing”. 

Instead, I suggest we offer workers plan alternatives -”free” plan or “20% pay” plan.  Here’s my suggested  choice of plans: 

1.  Workers  keep what they plan they have today but now contribute 20% or…

2.  Move to a high deductible/GAP plan alternative at no charge.  Alternative 2 still provides the government similar cost savings to a 20% pay plan.

In my 20+ years of benefits experience, I have always found that by offering “alternatives”, everyone can get what they want.  I believe this way we can afford to make health plan alternatives available…for a price.  And especially in this economy, we let each participant decides the plan they are willing to pay for.

Again, I do not sell these products directly but rather, make them available  through which ever Insurance Brokerage each municipality chooses.  Yet, I remain willing to meet with anyone, Elected Offical, Taxpayer, Insurance Agent or Union Representive to discuss how this GAP strategy works and how it could be utilized to save local, county, and state government’s substantial dollars, benefits employees and appease taxpayers.

Let me know if you would be interested in learning more about this cutting edge GAP strategy.  248-464-6544  www.cheltenbenefitsgroup.com

Dick Chelten, CLU, ChFC, RHU