- Funding Comparisons
J.W. Terrill recognizes the rising costs of offering benefit programs to employees. That is why our combination of brokerage and consulting services take an in-depth look at alternative options for our clients. Health care is essential in today's world, and with all of the options that are available, it may seem difficult to determine what the best options are. We help clients sort through Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and a variety of other cost saving plans to save the employer money without drastically reducing benefits to the employee.
Consumer-driven health plans have been seeing more and more prevalence as the cost of employer sponsored health plans has increased over the past 10-15 years. As we've seen increases in the rise of obesity and other chronic diseases and a decrease in active lifestyles, insurance carriers have seen the effects through increased utilization of health plan benefits. Consumer-driven plans increase deductible and out-of-pocket maximum dollars to the employee so that individuals are more responsible for their lifestyle choices.
By increasing these deductible and out-of-pocket amounts, J.W. Terrill and their clients can recognize savings of premium by exploring Health Savings Accounts that offer employees tax deductible dollars to put into an interest bearing savings account to pay for these increases in deductible and out-of-pocket expenses. To help employees realize a change in lifestyle, J.W. Terrill offers a wide array of wellness programs and has a dedicated wellness coordinator that assists clients with exercise programs, nutrition plans, and tobacco cessation programs. By working with J.W. Terrill, clients experience cost saving plan exploration and an increase in healthy living all in one place.
Self-funding an insurance plan can be a risky venture for any employer and is not recommended for every client. J.W. Terrill works with clients to determine if self-funding is a way for them to save money on their insurance plan. Unlike traditional fully insured plans that have a fixed premium every month regardless of how many claims you have, self funded plans involve fixed administration and stop loss fees just like a fully insured plan, but the employer pays for claims as they happen. If your group is healthy and does not have many claims or large losses, a significant savings can be recognized when compared to fully insured costs. J.W. Terrill uses claims history and demographic information as well as a client's willingness to risk self funding when exploring self-funded options, as it is not the best solution for all groups.
Another way Terrill works with clients on funding options to save overall money is to look at partially self funding plans. With these options, clients will keep their fully insured plan, but have options to reimburse employees deductible or out-of-pocket amounts to a certain level. As more traditional low deductible plans become cost inefficient, Terrill uses plan utilization models to predict client savings of partially self funding plans to save clients premium dollars.