Did you ever think you would see a $500 monthly employee premium for a $5,000 deductible HSA qualified plan? Welcome to 2020, it's going to be a challenging year for employers and employees. The Affordable Care Act is really not all that affordable for most. Yes, it has provided much needed protection for groups who have employees with serious medical conditions, unfortunately there are a lot of other companies paying more for it.
While the $500 monthly premium is what we have see for companies with older employees everyone is seeing higher premiums regardless of who your insurance carrier is. Most of our groups with 50 or fewer employees use BlueCross BlueShield of Tennessee. They have the pricing advantage the S Network provides making them the lowest cost option if you want a HSA qualified plan. Unfortunately, our most popular plan last year, the Silver 40 is seeing 20-30% increases and the options to reduce costs dramatically reduce the benefits.
One option that has helped a few of our groups is using a strategy called "Level Funding". These are self-insured plans that allow them to avoid the costly "community rating" provision of the ACA. These policies require you to go through medical underwriting so only the healthiest groups qualify. We have successfully used Level Funded plans with Aetna, Cigna, Humana and United HealthCare.
Hold on, because of high cost specialty prescriptions and the commonality of high cost procedures like joint replacement we don't see a slowdown in rate increases.
Want to see if your company can save money with a Level Funded group health insurance plan? Give us a call and hopefully we can help you like we have many of our great clients.