CINCINNATI, Dec. 20, 2018 /PRNewswire/ -- As health plan premiums rise nationally, so too do insurance companies' earnings, but one local business has found a way to return some of those would-be profits to consumers.
ClaimLinx is a consultant, insurance agency and third-party administrator specializing in an alternative strategy for purchasing health insurance that saves companies money while delivering quality benefits.
Nationally, insurance companies reported strong growth in 2018, amassing an estimated $47 billion of global profit by the end of the second quarter, according to an analysis of company documents by Axios media company.
Not all of that money is being funneled into improving care or services. Insurance companies spend only 80 percent of funds collected in plan premiums on actual medical care, as required by the Affordable Care Act.
Packed into those huge premium bills are charges for administration, marketing and company profits for share-holders. That's thousands of dollars each year being given to insurance companies instead of being spent on what workers really need: quality medical care.
Tom Quigley, National Benefit Consultant at ClaimLinx, says buying traditional health plans leaves a lot of money on the table, an especially difficult prospect for small businesses where profit margins are slim.
"It's really a shame, because people are really just giving all this money away to health insurance companies without even realizing it."
So ClaimLinx abandons traditional methods of purchasing health insurance. Instead, it shows clients how to combine a high deductible plan from a major carrier with a self-funded medical expense reimbursement plan.
The plan with a major carrier offers a wide physicians network with discounts for services and a stop loss in case of high medical costs. The medical expense reimbursement plan offers the ability to add a lower deductible and better cost-sharing measure for services, like copays.
Christy Quigley, President of ClaimLinx, compares this strategy to other types of coverage.
"People have car insurance, but they don't buy it for $40 oil changes. Imagine how expensive it would be if it did. We use the same concept for health insurance."
This two-prong strategy allows small businesses to restore some of its health care dollars to its employees by delivering better benefits at a much lower price.