THE HEALTH INSURANCE PARADOX WHO IS WINNING THE WAR? If you provide health insurance to your employees, you may have noticed a few things have changed over the last several years. Namely the prices you are paying for medical and prescription plans and the levels of coverage your employees have grown to expect. The fact is, that in the United States very few carriers (less than 10%) use a community rating method formula that was once prevalent. Now over 90% utilize multiple pricing strategies, including experience-rating factors, shadow pricing and steerage tactics through creative plan designs that drive consumers to the most profitable plans. The paradox is that health insurance is rarely that any longer. If you are like most employers you now have a health plan. Insurance as defined by Webster is: coverage by a contract whereby one party undertakes to indemnify another against unforeseen loss by a specified contingency or peril. Carriers, or insurers have created a system to significantly reduce their downside risk by “insuring” foreseen perils, covering maintenance issues, i.e. office visits, prescriptions, tests, preventive care, etc. Clearly in our economy health insurers play an extremely important role in minimizing the financial impact of long term or acute illnesses and injuries. Technology and sophisticated medical care is costly. Thus we must continue to use the financial instruments available, namely insurance. The choice of which instrument you choose will determine the level of success that will affect everyone’s bottom line. Health plan premiums for the typical benefits enjoyed by private sector employees have doubled in the past ten years. Employers have pursued several strategies to curtail these increases. They change carriers, hire brokers to negotiate rates, pass on costs to their employees in the form of premium contributions and reduce benefits. Still the increases are two to three times the annual CPI.  So who is winning the war? Is there a way out? Can we reverse this trend? The answer is yes. But the most important question to answer affirmatively is… Are YOU willing to do what must be done?

BENEFIT BUILDERS INSURANCE GROUP CLIENT CUSTOMIZATION SYSTEM   The employee benefits industry is rapidly changing. Significant opportunities exist for employers who are willing to embrace new technologies and new ideas. Benefit Builders specializes in customizing benefits programs to take advantage of our clients’ demographics and long-term business strategies.   Our approach requires a more active role by all parties than what is customarily seen in the market place. Lowering costs and providing greater protection against financial ruin due to chronic or critical care is everyone’s goal. Our system will help you achieve your goals better than any in the marketplace.   Ask yourself these five questions:   ·          Is our company unique? ·          Do we ever customize our service or product to better suit our client? ·          Have our benefits costs increased while our coverage has decreased? ·          Why do we change carriers, and or plans every couple of years, and never appear to get ahead of the game? ·          Are our employees getting healthier every year, or are we going the other way?   With Benefit Builders’ Client Customization System you will see positive results as your employees receive the attention they deserve. From wellness competitions to common sense protection as well as a greater understanding that can help them choose the coverage that is right for their specific needs. After all, the intent of most benefit plans is to attract and retain happy hard working employees. Let us show you how to evolve your benefits expenses into benefits investments in your employee’s well being!   VARIABLES CONSIDERED IN OUR CUSTOMIZATION SYSTEM Demographic Constitution Of Client  Age Classifications  Education Levels  Income Levels  Male/Female Ratio  Cultural Idiosyncrasies  Adaptability  Family Composition  Benefit Perceptions  Attitude  Historical Profile Of Benefits*  Benefits Offered  First Benefit Plan  Claims History  Carrier Vendors  Broker History  Lost Time  Service Issues  Network Issues  Population  Financial Data*  Benefit Line Costs  401k Contributions  FSA Accounts  Employee Contribution  401k Assets  HSA Accounts  Broker Fees  Lost Time Payments  HRA Accounts  Corporate Benefit Philosophy  Collectivism Versus Discriminatory  Patriarchal Versus Self Reliance  Democratic Versus Autocratic   Status Quo versus Opportunity  Educational Values  Wage / Benefit Motive

BENEFIT BUILDERS INSURANCE GROUP 8863 Snow Rd. Parma Heights, Ohio 44130 PH (440) 888-0655 FAX (400) 888-0656 email  mike@strippyvortex.com