By Bill Geraci, CEO of MAGIC Health Insurance Solutions
I’m dead serious! We have several clients who still offer their employees $500 deductible health insurance plans.
We just conducted the renewal meeting with one of these employers. They currently have 59 employees on their self-funded plan.
Say what!? Self-funded with only 59 employees? They’re too small to self-fund!
They’re not “Johnny Come Lately” to this party. They’ve been self-funded for over 15 years and have saved a ton of money.
How much? Well, hold on to your seat!
We did an analysis to see how much they’ve saved over the last seven years, since 2013. Every other year we get fully insured quotes, just to make sure we’re doing our due diligence.
Not once was the fully insured plan less expensive. In most cases they were way, way more.
We estimated the employer has saved about $1.6 million.
But wait, there’s more!
We showed the employer how much they could have made in interest income if they had invested each year’s savings in a 5% interest bearing account. This amounted to another $240,000 in potential, interest income.
Can we say $1.8 million in just seven years for a employer with 59 employees on the plan?
As we sometimes jokingly say, “We always do MAGIC but sometimes even miracles!” This is one of those “miracle” moments.
The owners had big smiles on their faces when we went through the analysis with them. Then suddenly, one of them asked, “How can we provide a free health insurance plan to our employees?”
I was stunned! I said, “You already have one of the best plans around. Why do you want to offer a free plan?”
As quick as a whip, he replied, “To attract and keep more and better employees!” This is someone who gets it!
So, we’re toying around with the idea of creating a high deductible plan where there will be no premium contribution from the employee and the employer will fund a portion of the employee’s Health Savings Account (HSA).
Why would we ever want government run healthcare when there are incredible employers doing amazing things like this for their employees?
Interested in learning more about how to control your health insurance costs and keep more of your hard-earned revenue? We created a FREE 6-part video series that educates you on cutting-edge strategies you should consider. Subscribe here and get the videos for free.