Group Insurance (non-Chamber)
Regardless of the size of the company, employees need and enjoy the benefits provided by their employer’s group benefit plans. And, also regardless of the size, the basic benefits are the same even if the level of coverage and other particulars are different. What does change with size is the opportunity for different methods of funding the benefit plan. These different funding methodologies while advantageous to both employer and employee can lead to a host of complexities that require the skill and experience of a knowledgeable specialist.
Smaller companies can usually find pre-packaged benefit programs which use a broad range of client groups as the pool from which the experience factors and therefore the premiums are derived. The greater number of employees a company has the more chance there is for the company to want to use their own group as the fundamental determining factor for analyzing claims experience and the resulting costs of the plan.
When exploring group benefits for your company the following questions need to be asked:
Where are you now? Where do you need to be? Employee demographics! Future development. Industry Standards. What does your competition offer? What do you need? What do your employees need? What would everyone like? What can you afford? What is your risk tolerance?
With the answers to these and a host of additional questions we can craft the solution that is right for you and your employees and offer a product that will meet your needs today and into the future. The underlying issue in any benefit plan is the funding method. Organizations need different employee benefit funding methods depending on their employee count and comfort with fluctuating premiums.
There are basically three fundamental funding methods.
All three funding options provide the protection of fully pooled and insured Life Insurance, Long Term Disability and Accidental Death & Dismemberment Insurance protection, if you choose these options in your plan design.
Option One – Stability and Guaranteed Premium
- Optimal for companies with 1 to 25 employees
- Available to companies with up to 50 employees
Firms with less than 10 employees require guarantees and rate stability. One employee could have a dramatic effect on claims experience and if the plans design is not created for the specific purpose of protecting the firm against fluctuating claims and more specifically against high claimants the firm will not be able to burden the cost of a high claimant and could have coverage cancelled or unable to afford the premium when they need it the most. The Chamber of Commerce Group Insurance Plan™ is second to none in meeting the needs of firms looking for the protection provided under Option One.
Option Two – Traditional Benefit Plan
- Optimal for companies with 25 – 50 employees
As a firm develops and grows in employee count their financial comfort often allows them to leave the structure of a pooled rate plan and accept more risk in the operation of their benefit plan. Typically there types of plans offer benefit options more tailored to the individual firm’s needs.
Option Three – self-funding, individually tailored solutions
- Optimal for companies with 50 – 1000 plus employees
- Available for employees with 25 – 1000 plus employees, who have experienced stable claims history as well as stable employee demographics and have strong corporate financial management practices.
A financially stable firm whose history provides reliability for future forecasting can take advantage of significantly lower claims management costs by self-funding Extended Health and Dental claims up to a chosen level. These plan designs actually permit a client to lower their liability exposure of catastrophic health claims from the traditional standard insurer plan design by providing stop loss coverage at reduced levels. An analysis of your claims history will determine if this funding method is advantageous for your firm.
Whichever option you choose, we are there to provide experienced analysis, implementation management, and ongoing review of your firm’s needs.
Contact our office to discuss your needs whether you currently have a benefit plan or considering one for your firm.