“May you live in interesting times” Chinese proverb/curse

These are truly “interesting” times we live in today.  Combine a nationwide recession with scary unemployment numbers; throw in historic bankruptcy and foreclosure figures on top of  $4.00 per gallon gasoline and it’s little wonder why so many people are expressing frustration and fear in most polls today.

Bottom line:  even if you aren’t personally experiencing economic troubles, you don’t have to look far from your doorstep to find folks who are.  As Health Insurance Brokers, we understand that both Employers and their Employees are looking to us to create new benefit strategies for these “interesting” times.

Certainly, it’s always important for Agents to save money for their Employer clients.  But lately, most premium savings are coming at the expense of Employees.  It’s happening so frequently, it’s now even been given a label, “Cost Shifting”, lowering Employer premium costs by increasing employees deductible/coinsurance costs. 

Big problems demand big solutions. Today, creative Brokers across the country are implementing a new strategy:  Medical GAP Insurance; a supplemental insurance product added to high deductible health plans.  GAP insurance covers most deductibles and coinsurance costs for employees while saving premium dollars for Employers.  GAP insurance actually can improve benefits without disrupting employee’s choice of hospitals or personal doctors.

Which brings me to our latest success story.

Recently, we delivered a medical GAP insurance quote to a Health Insurance Broker scheduled to meet with a small Michigan township.  This particular township is typical of every Public and Private Employer today.    Revenues are down; expenditures are up with employee benefits costs being declared one of the biggest cost culprits.

We typically look at health insurance plans at renewal time only; today’s economy and budget issues are causing some Employers to review their plans mid year; that was this township’s situation.

The existing plan was a HSA high deductible plan.  The township reimbursed all deductibles for the 100 active employees and pre 65 retirees.  Its annual expenditures for HSA premiums and deductible reimbursement totaled nearly $1,300,000.

Our broker introduced a Point of Service (POS) plan with virtually 100% coverage while saving $373,929.20!  That’s a savings of $3,739 annually for every employee/retiree!

We are saving this township big dollars with NO RISK; these savings are all accomplished by guaranteed insurance products- Major Medical and GAP insurance plans.

Remember, we are saving Employer premium dollars and doing so without shifting costs to employees.  Take a look at the cost and benefit comparison pdf schedule here (click here) and see the great level of benefits that allow both Employee Unions and Employers to reach agreement.

If you were looking for opportunity, it’s knocking on the door everywhere.  In the Michigan Public Employer market alone, there are 1750 Villages, Cities and Townships. Every one of them is awaiting your call.

Need a GAP quote?  Contact Chelten Benefits Group. 

Telephone: 248-464-6544  email:  rfp@cheltenbenefitsgroup.com.