Health insurance remains one of the biggest challenges for small businesses, where premiums are high and benefits are low. How can a small business control costs and compete? One way to save is by pooling employees through a master health plan.
Here's how it works.
Master Health Plan. Basically, a master health plan is a custom health insurance policy designed to improve access and quality of healthcare services to employees -- including stable, affordable rates.
Calculating Premiums. A number of factors go into calculating the cost of premiums, but risk is the primary driver. The larger the employee group the lower the risk. The smaller the group, the higher the risk. That’s how large corporations are able to offer comprehensive employee health plans at attractive prices. For small business, it’s a game that can’t be won alone.
For small employer group plans, insurance companies use age-banded rates and composite pricing to determine premiums. Age-banded, or age-based, rates increase for every member, for every age from 14-64. You can see how this structure could be challenge for forecasting and managing costs. For composite pricing, rates are based on the overall risk profile of a whole group which makes it easier to manage healthcare budgets.
The Bargain Power of PEOs. Working with a Professional Employer Organization, (PEO), is one of the best ways for a small business to access a master health plan. By grouping small businesses together into one large pool, PEOs have more bargaining power to secure lower rates, partner with reputable insurance providers, and to assemble the type of health insurance plans that better fit the needs of its clients. In addition, PEOs are able to help small businesses identify cost-saving strategies, such as managing administrative costs.
Are you ready to propel the health of your workforce AND your company’s bottom line?
Propel HR is excited to announce our own master health plan through a partnership with one of the most respected health insurance companies, BlueChoice Health Plan of South Carolina. A few highlights include:
Better Benefits. Lower annual rates for BlueChoice benefits package, rated A+ by A.M. Best Co. for its financial strength (*A.M. Best Co. reaffirmed the A+ financial strength rating of BlueChoice as part of the group rating for the BlueCross® BlueShield® of South Carolina companies.
Lower Premiums. Bulk rating and composite rates (not age-banded) are lower and less volatile. By joining the larger pool of our Master Health Plan and using our advanced underwriting tools, your renewal premiums will be more predictable, more stable and more affordable.
Greater Coverage. The plan can begin any time during the year and provides access to leading health, wellness and medical programs, including 98 percent of S.C. doctors and all hospitals, as well as access to BlueCross BlueShield networks in all 50 states.
As a South Carolina based, IRS certified PEO, we see this master health plan as a significant addition to our comprehensive menu of HR solutions and exciting news for our current and future PEO clients in South Carolina.
Contact us at 800-446-6567 to learn more about the Propel HR Master Health Plan.
And for more information about PEOs, download our great new eBook, "The Small Business Guide to Choosing the Right PEO." You'll learn how to offer better health insurance to your employees, how to minimize HR risks and how to save time and money.