Examples

Read on to learn how Weigel & Associates saved their clients' money and helped their employees and families.

Example One: Mediium Sized Employer

Problem:

An employer with eight employees on his Group policy was facing a large rate increase and had no other Group carrier options. In the past the employer had raised the deductible to $2000 per person and increased the employee contribution to 40% of all premiums. The result: employees were going to be paying an average of $484 per month for their coverage. These same employees had not had a wage increase in years.

Solution:

We worked with the employer to select a large-deductible Group policy. Then we adopted a Health Reimbursement Arrangement (HRA) to reimburse the employees 60% of the entire deductible.

Benefits:

To the Employer:
  • Over $40,000 per year in saved premium available for reimbursements
  • The medical reimbursements were capped at $4050 per person/year
  • Same tax benefits for the Employer and Employees
To the Employees:
  • Elimination of the $2000 up-front deductible
  • Reduction in their Maximum-Out-Of-Pocket claim exposure
  • No increase in their premium contribution

Example Two: Small Employer

Problem:

An employer with five employees on a Group policy was looking for ways to reduce the ever-increasing cost of their medical insurance program.

Solution:

We terminated the Group policy. This created a ‘Qualifying Event’ for a ‘Special Enrollment Period’ for any Individual medical policy. We assisted the employer and employees in obtaining Individual medical policies. Then we adopted a Section 105 Plan to reimburse eligible employees for their premiums and deductibles.

Benefits:

To the Employer:
  • He and his key employee, were able to eliminate the Federal and State income taxes and FICA taxes on all their premiums and deductible expenses
  • There was over $20,000 per year premium savings for the business
To the Employees:
  • Each employee selected the Individual medical carrier and policy of their choice
  • They were eligible for the federal Premium Subsidy and sometimes the Deductible Subsidy
  • Their net premium and deductible were lower than the Group policy

Example Three Could be You...

Contact us today to learn how we can help you save money on medical insurance.