Employer group with 75 employees located in the southeast part of the United States. This employer has a 90% male population, and over half of the employees are under the age of 40. This employer currently offers a high deductible plan which is nearly all paid for by the company for employee only coverage. The employer has not had any large claims over $25,000 in the past 24 months, and has a fully insured employee rate of $220.
Due to the ACA changes, and the Community Rating Analyzer, their broker was able to show them ahead of time that their fully insured rates for the exact same plan design will be $339 for employee only coverage due to these ACA Small Group Rates. That is a 54% increase!
Why This Is Important
Obviously from the perspective of an employer the answer is obvious, and hopefully it is just as obvious why this should be important to brokers. For your own clients it is important from a consulting perspective to be able to exhibit what will happen to them. This is also a huge wedge to help you get new business. After you have the correct analysis, you can make appropriate recommendations for considering self insurance as well as other cost mitigation strategies.
