As health care costs continue to rise, level funding and self-funding are becoming a more and more attractive option for smaller companies. Technically speaking Benefit Administration Group uses level funded health insurance and insurance captives as the funding mechanisms for each pay-per-use health plan. In more simple terms, here is what that means for customers like you:
- Each plan has fixed monthly premiums and no change in monthly costs regardless of how many claims are incurred each month.
- Instead of your premium rates being determined by community rates set by your employees’ age and zip code, premium rates are determined by proper underwriting and the actual risk (demographics and health history) of your employees. This is accomplished through the use of a simple online health questionnaire and allows many companies to get far lower rates than they would otherwise from regular fully insured products.
- At the end of each year, if you incurred fewer claims than expected, your company gets a refund for the unused claims dollars.
- You have stop loss insurance fully baked into your plan rates so that if you incur more claims than expected during any given month, or throughout the year, you still never pay more than the fixed monthly premiums.
- If at any time you don’t like your plan, or you don’t like your renewal rates you can always leave and go back to your old carrier or a new one.