"Do it yourself" Texas Group Health Insurance Plan Design from a Dallas Group Health Insurance Broker Saves Dallas Area Businesses Big Bucks

Are you a do it yourselfer? Dallas area businesses can take a similar approach with their group health insurance plan and pocket big savings and still offer good benefits to their employees.  There's no need to change insurance companies, because you can do this with your existing Texas group health insurance carrier. 

But unlike the home project you completed yourself, your Dallas group health insurance broker can do all of the work for you.  Your group health insurance company and your Texas group health insurance agency will probably grumble about this approach, because it takes some extra work on their part, and they end up making a lot less money on your compnay's business.

Here's how it works.  You know that group health insurance plan that you have for your employees?  Just like the last automobile you bought, it came pre-packaged with add-on benefits like a prescription drug copay benefit and doctor visit copay benefits. You selected a deductible and coinsurance, found out what it cost, and split a portion of the cost with your employees.

Yes, you can design a "build it yourself" Texas fully insured major medical group health insurance plan for your employees that will give them the same benefits as they have now, but you could save as much as 25 to 40% in premiums each year, and get lower rate increases in future years.  How much could your business save if you were able to reduce your group health premiums by even half that amount?  Now remember, your Dallas group health insurance broker is going to resist this and tell you it can't be done, because they will do a lot more work for a lot less in commission, so put your foot down and insist on reviewing a "DIY" style group health insurance proposal if you get resistance.

Here's the basic "Do It Yourself" fomula for saving up to 40% on your Dallas group health insurance rates.  These are the building blocks you can use that will allow you to save your company and your employees big bucks, and quite possibly have even better group health insurance coveage than you offer now:

  • Start with a fully insured high deductible major medical group health insurance plan from any of the top carriers in Texas, including Blue Cross Blue Shield, United Healthcare, Aetna or Unicare.  These four carriers represent over two thirds of the small group health insurance market in the Dallas Fort Worth metroplex.
  • The group health insurance plan you select should be "HSA eligible" and have a high deductible of between $2,500 to $5,000 per individual, and between $5,000 to $10,000 per family.  The family deductible should also be an "aggregate" deductible, which means there is one shared deductible for the entire family. 
  • This type of plan does not have as a benefit a prescription Rx copay benefit or a doctors office copay benefit until the employee or employee's family have met their annual deductible.  An "HSA eligible" plan does not mean that you have to set up an HSA (health savings account); it merely means that the plan allows you to have one if you so choose.
  • You'll notice that the monthly premiums for this type of Texas group health insurance plan are very cheap.  Its probably about half of what your company is paying now.  That's one of the ways you'll save a lot of money.  Don't faint or worry about the high deductible and the lack of copay benefits, because you will reduce the out of pocket risk of each employee and family outside of the plan you select.
  • Next,  work with your broker to design a Health Reimbursement Arrangement or HRA, using a very affordable third party administrator.  What the HRA does is reimburse employees for a certain amount of eligible medical expenses after they reach a certain level of out of pocket expenses.  For instance, if your company has a $1,000 deductible plan, you can select a higher deductible plan and then use the HRA to reimburse employees for any eligible medical expenses between between the new deductible and the old deductible.  You save a lot of money because statistically, about two thirds of employees never meet their deductible level, so you're paying for health care coverage that is not often used.  The HRA allows you to offer the same or better coverage to employees, but your company will be writing smaller checks to your group health insurance company.
  • Next, what you can do is purchase a medical gap insurance plan from Colonial Life and Accident for your employees that pays employees and their dependents cash, anywhere from $500 to $3000, to cover major medical expenses.  Again, what the medical gap plan does is lower the out of pocket expense risk to employees and dependents at a lower cost than if you had a lower deductible group health insurance plan.
  • Next, what you can do is purchase a prescription card for your employees to give them a drug benefit.  Prescription costs today make up about 25% of the cost of a group health insurance plan.  We have found really good and affordable prescription drug benefit cards can be purchased for less than what the group health insurance companies charge for this benefit.
  • Next, what you can do through your HRA is implement an employee wellness plan.  You're going to be saving so much money on health insurance premiums, that you can take some of that savings to pay for a corporate wellness plan that gives employees incentives for improving their health, whether by taking a comprehensive diagnostic exam, or by participating in a smoking cessation, weight loss, or exercise program.  Even a small business company can reap huge rewards with a wellness program.  Just preventing one cancer, diabetes or heart attack in the company's workforce can ave a company hundreds of thousands of dollars in health care, and lost wages and productivity expenses, and lower health insurance premiums.
  • There are a few more building blocks and techniques for the Dallas area group health insurance do it yourselfer.  But the ones above will save a company a lot of money.  The savings is not only the first year, but every year you have the plan.  And since yourTexas group health insurance carrier will be paying fewer claims because you will have fewer employees meeting the higher deductibles, your annual inflationary rate increase will be less than other businesses that prefer to go the pre-packaged route.

There are countless number of variations on the above DIY group health plan design that we would be happy to review with your company. This DIY design strategy allows you the employer to build the plan that you want with the benefits that you want at a big savings over the pre-packaged plans offered by the major Texas group health insurance companies and most Texas group health insurance brokers.

And remember, the best part is that you do not have to do the work yourself.  You can be the general contractor,  and leave the work to your Texas group health insurance broker or agency, or your Dallas Texas employee benefits agency.  Just tell them what you want, and if they grumble or say it can't be done, give us a call for a free, no obligation consultation on your business, including affordable Dallas group health insurance quotesContact Mike Chapman at TexasGroupBenefits.com, (214) 764-6315 or (888) 398-6246.

Dallas Fort Worth Group Health Insurance Agency Serves the Needs of Small and Mid Sized Businesses

Small Businesses and mid sized businesses in Dallas Fort Worth and surrounding communities can rely upon Texas Group Benefits to find affordable benefits for their employees.  Finding an insurance broker or agent who understands and will listen to a business owner's or CEO's needs does not have to be difficult.

Texas Group Benefits is dedicated to supporting the needs of our clients.  We know our market, and we know how to provide our clients the best insurance plan designs that meet a range of needs and budgets.  We can help your business provide the employee benefits plans that will serve your business needs and will best meet the needs of your employees.  We are certified as Chartered Benefits Consultants and the training, expertise and experience your business deserves.

We offer consultation and support in addition to group health insurance and group medical plans from a rated companies, group dental insurance, group life insurance, group disability insurance, and voluntary benefits or supplemental benefits.  We can provide our clients Texas small group and fully insured health plans, as well as self funded and partially self-funded medical plans for larger businesses. We also help our clients develop affordable 401K retirement plans with very low administrative costs.

For more information, contact us at 214-764-6315, or (888) 398-6246.

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