CINCINNATI, Dec. 13, 2017 /PRNewswire/ -- Right now at small businesses all over the country, administrators are making a grim choice – cut benefits for next year's insurance plan or face strained resources to cover their premium increase.
Premiums for employer-sponsored health benefits for 2018 are expected to be the highest since 2011, according to the human resources consultancy Mercer's 2017 National Survey of Employer-Sponsored Health Plans.
Blame it on Washington, D.C., blame it on insurance company stakeholders, blame it on anyone who unjustly seems to pull in profits through the industry. It all adds up to one thing: employers and their employees are continuously being asked to pay more to receive less.
But for one company in Cincinnati, this is a problem with a simple solution. ClaimLinx, a full-service consultant, insurance agency and third party administrator, has pioneered new ways of purchasing health insurance so companies can cut costs without sacrificing benefits, such as increasing deductibles or copays.
"Our whole goal is just to save people money on their health insurance – it's hard sometimes but when we do it's incredible what it can do for a business," said Christy Quigley, President of ClaimLinx.
They do this by combining a high deductible insurance plan through a major carrier — Anthem, Humana, Aetna, Cigna — with a self-funded medical expense reimbursement plan.
The trick is to take the best of both types of insurance.
From the plan through a major carrier the company receives resources, including a wide physicians network, competitive discounts on procedures and a stop loss in case any employee has high medical costs.
From the medical expense reimbursement plan the company has the ability to customize its own copays and deductible while still receiving the tax benefits exclusive to a self-funded plan through section 105(b) of the IRS code.
Tom Quigley, National Business Consultant at ClaimLinx, said he sees business owners struggling with decisions about their plan every day when they don't need to.
"What it really boils down to is a math problem. The problem is it can be hard to take the emotion out but you really have to when it comes to your benefits."