Saving Employee Benefit Programs after National Health Reform The “Insured HRA” Plan

1. Saving EmployeeBenefit Programs after National Health Reform The “Insured HRA” Plan

2. The Cost of Health Insurance • How to stay ahead of anticipated increases? • What to about complying with PPACA • Is there a strategy that will reduce costs, maintain your current benefit levels… and still prepare for PPACA?

3. Options for Employer Groups • Do nothing, hope for the best, then dump your employees to the “Exchanges” in 2014 • Implement risky “self funding” schemes hoping your claim costs are low and your monthly cash flow is sufficient ….or…. • Use a new, safe strategy to guarantee savings without risk, maintain benefits… and still comply with PPACA • The “Insured HRA” Plan

4. The “INSURED” HRA Strategy High Deductible Plan INSURED HRA Combine a High Deductible Major Medical Planwith a INSURED HRA Plan.

5. Steps • First, Modify current benefit plan to a “High Deductible” (4-5k) Health Insurance plan. • Result: Immediate savings on your annual cost of insurance. • Next, add “FULLY INSURED” HRA coverage • This Supplemental insurance plan covers the increased deductibles and coinsurance. • Keeps out-of-pocket employee expenses same as current plan design-fully PPACA compliant!

6. MAJOR MEDICAL + INSURED HRA • Equivalent coverage to current plans • Same employee out-of-pocket expenses • Lower annual premium costs • Comply with PPACA • Typical annual savings averaging up to $5k per employee! + INSURED HRA “High Deductible” Plan YOUR SAVINGS! Combined plans cost less with same coverage!

7. How It Works • Employees receive two insurance cards; one for Major Medical Plan and one for INSURED HRA Plan. • Employees also receive an information card that tells providers how to bill for services whenever they receive medical attention. • If the service is covered by Major Medical but is subject to the new high deductible, employees bill will be paid by the INSURED HRA plan.

8. Similar “GAP” Strategies • Medicare + “Medigap” Supplemental Plans • IBM vs McIntosh-”Component” Based PCs • Supplemental Dental and Vision Coverage

9. Sample Case – Employment Services This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

10. Sample Case – Consultant Firm This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

11. Sample Case - Auto Dealership This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

12. Sample Case – Public School District This sample case is for agent use only. This sample case is simply an illustration of how the Insured HRA concept can work. It is not intended to indicate rates or savings for other groups. Because there are many different plan designs, variations in claim risk, medical plans the rates and savings will vary by group. Contact your agent for a quote and savings illustration

13. How much can we save youand still comply with PPACA? To schedule an on site appointment Office: (248) 555.5555 info@sampleagency.com www.sampleagency.com