Consider a small business – one with just four employees – faced with a 24% premium increase. Three of the four are in their 50’s and have family coverage. And, by design, the plan is very generous; i.e., 100% coverage after a $2,000 deductible. So, we were looking at an annualized total increasing from $68,500 to almost $85,000.
Remarkably, raising the deductible to $3,000 brought the increase down to just 4.5%. But there was a small catch. The one younger employee in the group is expecting a baby. Was there a way to lower premiums and keep her out of pocket costs low?
Yes. Even in a group with just four employees, it is possible to have two (even three) plan designs.
So, we left the deductible at $2,000 for the one employee expecting (pun intended) claims, and raised the deductible on the others. The net increase turned out to be just 6%.
Know what we call that ($12,000) savings? (Wait for it.)
A ‘bundle’ of joy!