30 Second Insurance Tips©

Tip 265 – Small Changes Have Big Impact

Last week, we delivered a no increase(!) renewal to a larger client. Those are nice.

With tight budgets, we still talked about plan design changes that might actually lower premiums. Here’s one example.

Under the current plan, simple lab and x-ray charges are covered at 100%. If those same charges applied to the deductible and co-insurance, premiums would decrease by 7%.
Doesn’t sound like a big deal, does it?

It is if your plan covers 414 employees with an annualized premium of $3.4 million dollars.

Our client passed on the $237,000 savings noting the impact of the cost shift to his employees.

No doubt this will come up again next year, especially if we’re looking at a 10% increase!