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Blue Office Buildings

VALUE PROPOSITION

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Using innovative plan design and plan funding strategies, HCG delivers 15-30% savings, while maintaining, and often improving, benefit levels for all employees and their dependents. Even more, your group is not forced to change insurance carriers unless you so desire.

The benefits of utilizing one of our approaches include, but are not limited to:

  • Dramatically lower cost for the employer

  • If the employer desires, it may share the savings in the form of maintained or decreased employee payroll deductions.  This is a great move to consider in Year 1, when the plan is being implemented and there may be a feeling of apprehension in the air regarding the change.  With that said, the employer is free to do whatever it wants with all of the savings, of course.

  • Maintained, and often improved, benefit levels for all employees and their dependents

  • Increased room in the budget to add or enhance ancillary lines (e.g. dental, vision, life, ad&d, long-term care, etc)

  • Over time, as the employees become more comfortable with the change and recognize how hard their employer is working to not simply dump the rate increase onto them in the form of higher payroll deductions, improved employee morale.

  • Typically, it takes 3-5 years for your group's total annual cost to return to the level it was the first year we implemented the plan.

  • Access to a specialist who has implemented these plans since 2005 in 28 states and virtually every major industry for groups as small as 5 employees and as large as 2,400.  

  • Access to an ERISA attorney to help with any ACA-related questions/concerns/issues that may arise

  • Reduced renewal increases in subsequent years versus "traditional strategies"(which involve 100% of the cost going to the insurance company)

    • The insurance company can only increase the premium you buy.  All of our strategies involve purchasing less premium from the insurance company and using other methods to fill in the gap in coverage what that change creates.  

    • The point is, before you meet with us, let's say you receive a 12% renewal increase on your plan which costs $1,000,000 per year, leaving you with a $120,000 increase.  After we implement our plan design, you'll only be sending roughly $700,000 per year to the insurance company, so your renewal is now 12% of $700,000, or $84,000.  As the years compound, this results in a bending of the cost curve.

    • See "Five Year Cumulative Savings" Chart for one of our clients

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