Category Archives: Uncategorized

“…doing away with traditional insurance”

The words of the CEO of pinterest, citing being “fed up with the healthcare system…” as well. They, like a growing number of companies, are switching away from traditional coverage, and opting for self-funded or level funded plans.

“Nobody remembers how good health benefits are on paper, but everyone remembers what the experience is like,” says Alice Vichaita, head of global benefits at Pinterest. “Despite all our effort and thoughtfulness, the traditional health insurance experience was letting us down.”

When you are a relatively health company, you end up paying more than you need to. We operate on the assumption that all those premiums are needed to pay claims, and sometimes they are. However in my experience claims typically run around 70% of the money set aside for them. Who gets the remaining 30%? The Insurance company keeps it.

With Self-funded or Level-funded plans, you begin with lower premiums and a lower claims pool, and you share in any funds unspent at the end of the contract.

For the full article, click here.

Medicare for all?

Senator Tim Kaine recently released a bill called “Medicare X”- to allow people to decide if they like Medicare better than the other options. He says it will “increase competition and drive down health care costs.” The cynic in me also assumes you could keep your current plan and doctor if you like them…

So here is the obvious question- Medicare is funded by the medicare tax – 2.9% total split between employee and employer… for your entire working life. Therefore, Medicare Part A is free and Part B costs most folks $135 a month. How will this be paid for? Consider that most models at least suggest that Medicare is underfunded, and claims trends continue at between 7-8% per year.

I think that most people, if they could get a $2000 deductible health plan, that allowed them to use any MD, for $135.50 a month, would jump on the opportunity. I know I would. Just very unclear on hows it going to be funded.

Lowering your costs? Think differently!

In general, business owners and brokers are stuck in a rut. They believe they are stuck at the mercy of the few insurance companies out there, stuck with yet another huge increase, high deductibles and marginal service. And they are – until they think differently.

If you are a small business with 10-100 employees, primarily healthy, with a younger population, there may be a solution. The last 4 new clients we have brought on board have saved 15-20% on their premium, and improved their benefits.

How is this possible? Its called Level Funding. Essentially its unbundling all the services your current carrier provides, and finding less expensive ways to do each part- network access, hospital discounts, administration, service, etc. Its being able to participate in the savings in a good year – rather than the insurance company pocketing those funds. Its gaining control over your benefit design.

Give us a call if this intrigues you.


Judge strikes down association health plans

From The PBS News Hour, click here for the full article:

WASHINGTON — A federal judge has struck down a small-business health insurance plan widely touted by President Donald Trump, marking the second setback in a week for the administration’s health care initiatives.

U.S. District Judge John D. Bates wrote in his opinion late Thursday that so-called “association health plans” were “clearly an end-run” around consumer protections required by the Obama-era Affordable Care Act.

On Wednesday, another federal judge blocked the Trump administration’s Medicaid work requirements for low-income people.

The plans at issue in Bates’ ruling Thursday allow groups of small businesses and sole proprietors to band together to offer lower-cost coverage that doesn’t have to include all the benefits required by the ACA, often called “Obamacare.” They also can be offered across state lines, an attempt to deliver on a major Trump campaign promise.

Our system is broken- Part 14

Recent studies show that 65 million adults had a health care issue last year, but didnt seek care because of the cost. 12.5% of the population borrowed money to cover health care costs, paying $88 billion. As a country we spent an average of $10,700 a person on healthcare.

And while everyone in DC talks about it, and has a different viewpoint on it, most of them seem clearly politically motivated. Most of the suggestions work on the fringe of the problem. Obamacare didnt address some of the biggest inflation monsters- prescription costs, malpractice and tort reform, and medical fraud.

To read the entire article, click here

May 2019
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Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA. - SIPC - Brokercheck