Ask the Accounting Community

  • 1.  Health Insurance Renewals

    Posted 09-30-2014 04:34 PM
    We are a small company who opted to renew our health insurance last December 1st to avoid our plan having to comply with the Affordable Care Act.  We have now received our renewal rates beginning Dec. 2014 and they've jumped 30%.  Is anyone experiencing a similar phenomenon?  What strategies are you employing?  Thanks.

    -------------------------------------------
    H Gregory Everett CMA
    Vice President
    I B Goodman Mfg Co
    Newport KY
    United States
    -------------------------------------------


  • 2.  RE: Health Insurance Renewals

    Posted 10-02-2014 08:59 AM
    We are beginning our renewal process and have been told that we can expect up to a 40% increase, although it could be as low as 5%.  We have a decent mix when it comes to age groups.  Our goal is always to keep deductibles low for employees while also keeping the employee portion of the premiums down as much as possible.  We've been told that there could be an option to put our plan into a larger plan (I am not clear yet on all of the details of how this works) which would possibly help to decrease costs because the costs of our older employees would be spread out over a larger group.  This may be balanced though by higher deductibles for the employees as the low deductibles are not generally available for these larger group plans.  As it stands, we may consider increasing the percentage of the premiums that we pay for the employees and remaining in our current plan.   

    -------------------------------------------
    Jennifer Noga
    Accounting Manager
    Argent Capital Management LLC
    Clayton MO
    United States
    -------------------------------------------


    Original Message


  • 3.  RE: Health Insurance Renewals

    Posted 10-02-2014 10:12 AM
    ------------------------------------------- Marcos Arteaga Director/Manager Business Consultant / Accounting & Finance Tampa FL United States ------------------------------------------- You may want to look at the services of a Professional Employee Organization (PEO). Everyone in your company would become a "leased employee" since you'll get paid through the PEO. They usually offer additional benefits, like health insurance. Their rates tend to be very competitive as they pool all the employees to negotiate with insurance companies. As far as I know this organizations are not included in the ACA. Marcos Arteaga
    Original Message


  • 4.  RE: Health Insurance Renewals

    Posted 10-02-2014 11:49 AM
    We renewed at the same time last year 12/1/14.  We switched to a high deductible PPO model back in 2008 and have kept it ever since.  Our renewal was an 18% increase but we were able to change plans that was a 18% decrease.  This is due to choosing the smaller network within the PPO this is now common practice at least in California.

    -------------------------------------------
    Kayley Bell
    Corporate Officer
    DSD Business Systems
    San Diego CA
    United States
    -------------------------------------------


    Original Message


  • 5.  RE: Health Insurance Renewals

    Posted 10-02-2014 02:32 PM
    While we did not opt to renew early in 2013, we recently had a renewal and the initial quote was greater than 20%.  I would recommend seeking competitive quotes for the same plans and compare.  Also, ask for the decrements for alternative plan designs.  You could combine this with an HRA strategy to offer the same benefits to employees and essentially self-insure the plan design difference for less.

    You may also have an Employers Association in your state that you could join that may operate a Multiple Employer Welfare Arrangement (MEWA), a self-insured group plan, that would provide you with savings. 
    -------------------------------------------
    Raymond Cardonne
    Chief Financial Officer
    Branchburg NJ
    United States
    -------------------------------------------


    Original Message


  • 6.  RE: Health Insurance Renewals

    Posted 10-11-2014 01:57 PM


    ------------------------------
    Robyn Palmer
    Controller, Dipsol of America, Livonia, MI

    United States
    ------------------------------
    We took the plunge last year and upgraded our PPO/H.S.A. plan to the Affordable Care act attributes.

    This year we will get the quote on the same, as while we had to take about an 8% increase, 2014, the Employees are happy with the network and coverage.  I am covering mostly Michigan, but one employee in RI, Two in Wisconsin, One in N.C.

    I am having our broker quote on a new plan that allows a small employer to use self insurance with a re-insurance on top.

    All employees had to fill out questionnaires about each family member's health, drugs, ongoing medical conditions, mental health issues, etc. that were submitted directly to our Broker.  In this plan, you pay the re-insurance premium but the Company can receive back up to 50% of the premium if the use of the plan falls below the expected rate of usage.

    I had used a self insured/reinsurance plan when I had 1,000 employees, at a different employer, but was unaware these existed for small employers.



    Original Message