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Florida Health Insurance |
Florida Group Health Insurance
Florida group health insurance plan premiums have been going up at unprecedented rates each year. It doesn't appear that this trend will change any time soon. To control premium increases and still be able to provide quality health care to their employees, businesses will need to embrace creative solutions to the group health insurance problem.
This site will highlight some of those solutions and start you on your way to controlling group health insurance costs.
Why do Florida group health insurance plans cost so much?
Groups of less than 50 - Florida group health insurance is sold on a guaranteed to issue basis when the group size is 50 or less. This means that coverage cannot be denied regardless of the health of the group. Needless to say, this makes the underwriters very unhappy and many companies do not participate in this market. Those that do sell products in the small group market have been raising rates at an alarming rate. Clearly, the rise in insurance rates have outpaced the rise in health care costs. It is a systemic problem that goes far beyond the scope of this web site.
Currently, there are not many choices for the small Florida group health insurance shopper. There are only a handful of carriers in this market and none of them can be considered a bargain. If you have less than 4 employees you are going to have a hard time finding an agent. The insurance agents compensation for groups of less than 4 would not even pay for a dinner in a good restaurant. Groups of less than 4 should contact the carrier directly.
Individual plans for small groups - One popular Florida group health insurance trend is to pay each employee a little extra, give them a name of a Florida health insurance agent, and wish them luck. With few exceptions, individual insurance cannot be paid with a company check. The problem is that if any employee has a medical problem that makes them uninsurable, they are out of luck and will not be able to obtain insurance.
Health Reimbursement Accounts (HRA) - Since a business cannot directly pay for an employees personal insurance, the individual insurance alternative is often rejected. However, through the use of Health Reimbursement Accounts, HRA's, money can be transferred from the business to a spending account that can pay for private health insurance.
The tax consequences and the proper setting up of this arrangement is not to be handled by the joker who sits in your living room trying to get a check out of you. This should be done by a very competent agent. Use the link at the top left hand corner of this page to contact a Florida group health insurance specialists.
Medical Expense Plans for small groups - Medical expense plans use a schedule to determine how much they will pay out for each medical expense. For example, they might pay $500 for each day in the hospital or reimburse the insured $50 for a certain number of physician visits. The benefits vary from plan to plan. A Florida group health insurance specialist can stack these plans and create a more robust plan that could in many instances substitute for a traditional health insurance plan at much less cost.
Excess Loss Coverage - A "Wrap Around"
The secret of low cost Florida group health insurance is the creative use of a combination of plans. A medical expense plan will cover the majority of routine medical expenses, a pharmacy benefit manager can construct a custom prescription plan and an excess loss plan will pick up expenses at a predetermined level to protect the employer and employee from catastrophic loss. The total cost will usually be 30-60% lower than traditional group plans.
Using Temporary Insurance for Small Groups - Temporary insurance can be used for small Florida group health insurance plans. These plans can be held for as long as three years before the insured must prove insurability. They are low in cost, permit the use of any medical provider, have more lenient underwriting than traditional individual plans and can be paid for with a company check. They can be enhanced with standalone Rx plans and PPO networks for a very small additional cost. Plus, there are no restrictions in regard to reimbursing an employee for this expense.
The Future
Many of the Florida group health insurance carriers are coming out with higher deductible plans. By using flexible spending accounts and health reimbursement accounts the employer is shifting some of the responsibility of health care to the employee. The day of the low copay for all health expenses is rapidly coming to a close. It will take some time before the employee accepts the inevitability of this change.
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