Small employers are always looking for ways to cut costs and save money, especially when it comes to their health insurance. Health insurance can be a complex topic and there aren’t many choices out there for business owners to save money and provide solid coverage. Partial self-funded aka level-funded plans can be the answer.
The Current New Jersey Market
The current small group market in NJ — consisting of metallic level plans, super high age banded rates for older employees, and mandatory pediatric dental coverage for any dependents under the age of 19 — is what most small employers are accustomed to.
What’s New
Relatively newer on the scene are PSF (partial self-funded) plans, which by the way most brokers in the small group space are not familiar with, therefore most small-group business owners have not heard of. PSF plans are fully underwritten, which means the premium you pay is based on the health of your group. This opens the door for large savings on healthy groups. Groups with older populations can also see significant savings, as we discussed earlier, these members are paying extremely high rates based on their age.
More Features
Additional highlights include premium refunds for groups with lower than expected claims, pediatric dental not being required, enrolled members pay premiums based on tier (ie single, parent/child family, etc) not based on age banding.
Find the Right Broker
There are many additional advantages to looking at these types of plans as well and you DO NOT need to wait until your policy renewal to obtain a quote. If your broker hasn’t already brought the idea to your attention, consider finding yourself a new broker, one who is more proactive on the latest industry trends. To get trusted insurance advice, call (973) 500-4034.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
