WHY AGE STRUCTURING IS KEY IN MANAGING GROUP COST
All carriers are not created equal! If you feel like your cost is out of control, one of the first things you may want to do is find out if your plan is structured as AGED RATED or COMPOSITE RATED. If it composite and the carrier offer no other means of structuring than it is a good idea to find another carrier to work with.
AGE RATING AS A STRATEGY
One of the mistakes we see employers making is structuring their group plans by working classification. We understand this position as in most companies, management maybe able to afford more robust plans than some other working classes. Instead we recommend classifying by AGE, and here's why! By classifying groups by age, employer will have the ability to offer High Deductible Health Plans (HDHP) To older (Baby Boomer) employees. This will dramatically reduce the rates for older employees, increasing utilization and participation, these consumer driven type options allows employers to add tax saving Health Savings Accounts (HSA) which is an addition to retirement savings for older employees, a tax advantage for both employer and emploees.
The next section we will discuss, the industry outlook and why employers need to consider shifting to AGE RATED vs COMPOSITE
Optional, but highly
*Benefit brokers rarely discuss with their clients ways to structure their plans to maximize benefits, and control cost. The strategy laid out in this guide, allows the employer to take control of cost rather than relying on the broker of record to dictate what is affordable and what is not. The employer will understand how plans are designed and what to do to work within the frame of that design to curtail cost.
This means you can know with confidence that you have the final say on what your plan should look like, how offering of the plan will increase participation, without the additional cost, when structure properly