Chelten Return of Premium Health Plans
Return of Premium Health Plans (also called Level-Funded Premium) are a type of benefits program that allows small and midsize businesses to leverage aspects of both self-insured and fully insured plans to combat rising benefits costs. What does a Return of Premium program look like?
- A preliminary assessment of your organization will lead to an estimate based on your projected health risk profile. This can create substantial and immediate savings.
- Flat costs from month to month allow your organization to anticipate cash flow much more accurately.
- Claims reporting analytics will provide your HR team with insight into actual vs. expected cost of claims.
- Claims differentials in your favor can result in discounts on future premiums, incentivizing wellness and health-oriented behaviors.
- And, Return of Premium complies fully with PPACA regulations.
Traditional fully insured programs typically provide little or no insight into actual healthcare costs – and often result in dramatic fluctuations in premiums. Beyond this, premiums are generally pooled, causing healthier groups to subsidize groups with greater healthcare challenges, thereby reducing incentives to foster health and wellness inside (and outside) the workplace. Additionally, favorable differentials in healthcare costs return to the insurer, not you, the insured.
Self-insured programs generally require the insured to set up reserves against healthcare costs, and costs can vary dramatically from month to month. Our hybridized program averts these undesirable drawbacks while providing significant benefits to many organizations.
To learn more about Return of Premium plans and how they can benefit your organization, contact us.