Written by Michael G. Kirwan, ChFC, CLU
Published in the Morris County Medical Society Newsletter, Winter edition
Initiate a Personal Stimulus Plan for your Practice
- Employee Premiums — while there is no set or average rate for an employer to charge, it is critical that the plan participants have a vested interest in paying for their Health Care in an effort to engage them in both the selection of your plan offerings and in understanding how to control their costs/benefits, which directly impact the Plans Future Premiums.
- Increase your Rx Plan — we just provided a client a quote for a specific plan with an Rx card having a benefit of $15/$25/$40 and by increasing the benefit to $15/$35/$60, we reduced the cost for the doctor’s family plan by $103 per month.
- Deductibles — will provide not only an obvious premium reduction but will assist in modifying the (bad) habits of the covered employees.
- Co–Insurance — will save on premiums by decreasing the carrier’s share from 100% to 90%, 80%, 70%, etc..
- Type of Plan — consider changing from a PPO, to either a DA (Direct Access) or POS (Point of Service).
- HSA–Health Savings Accounts — utilize High Deductibles in exchange for substantially reduced premiums, typically saving sufficient premiums to cover the “potential” deductible, while allowing for the savings to be contributed to a “Tax Deductible” HSA/IRA account, which can then be used to pay for the deductible and many other expenses, with a 100% “Tax Free” withdrawal. Unused funds rollover for future use or retirement savings.
- HRA–Health Reimbursement Account — utilizes the same High Deductible concept as the HSA, and a Third Party Administrator (TPA), to provide a number of combinations of reimbursements to cover deductibles, co–insurance. co–pays and more.
- Section 125, Cafeteria Plan (FSA–Flexible Savings Accounts) — establish a plan to allow for “Tax Deductible” premiums. The cost savings to your Employee(s) is typically a minimum of 22%, while the Employer saves 10% to 14%.
- Additional Employee Pre–Tax Savings – can be achieved by allowing your employees, covered or otherwise, to pay for their out–of–pocket expenses on a 100% tax deductible basis. This would include expenses for doctor co–pay’s, co–insurance, deductibles, and an assortment of many other personal expenses (Pub 502).
- Additional Employer Tax Savings – can be achieved by allowing your employees, covered or otherwise, to pay for their out–of–pocket expenses.
Note: When considering making plan and/or carrier change(s), always verify that your providers accept your new plan and/or carrier.
Free Professional Office Consultations available to Society Members