It’s the fall of 1974 and I have finally earned a starting position on my high school football team. I am 6’2” and weigh in at 155lbs. The coach pencils me in as the starting safety because I am fast. My instructions were “don’t let anyone get between you and the goal.”
Fast forward 40 years. I didn’t get the offer from a professional baseball team and I didn’t get a chance to be the drummer in a rock ‘n’ roll band. I think that talent (the lack of it) was the big issue. Instead, my interests drew me into business and my career moved to the health insurance field. I have been selling health insurance and managing our agency for 30 years and loving it.
A football game requires a game plan; a strategy where the coach has considered the strengths of his team and the vulnerabilities of the opponent. That analogy is certainly appropriate in today’s health insurance market. Employers need a strategy to select employee benefit plans that are good for the business and deliver a quality product for employees. One thing I tremendously appreciate about employers in Nebraska is that they CARE about their employees and want to do what is best for them.
What’s the game plan for your business in 2015 as you make decisions about employee benefits?
#1 – Do you keep the old Wing T offense or try a new West Coast offense? You may have the option to renew the benefits that you had in 2013 or you could change to the new ACA (Affordable Care Act) compliant plans. Your old plan will allow you to keep your benefit structure, but the rates can be adjusted for medical conditions, medical trending and age. The rates on the ACA plans are only impacted by rating areas (location) and actual age. The new plans may be better for employers whose pre-ACA plans were rated up (as much as 67%) for medical conditions.
#2 – My opponent’s offense is very difficult to defend; what adjustments should be made to the defense? The health insurance market offers a maze of coverage options and ancillary benefits. What is the right combination of benefits for your employees and your bottom line? Health insurance has become more specialized. And now the employer’s choices will impact the employee’s eligibility for the Health Insurance Marketplace.
#3 – It’s 4th down and 3, do I punt or go for the first down? Don’t punt; work with a broker that is a Specialist in health insurance to analyze your position. Some employers have concluded that discontinuing an employee benefit plan was the right decision. Many employers have been able to provide better benefits and lower premiums with the new ACA plans. Your best choice depends on the demographics of your employees, your business model, and your budget.
ACA Update – On 7/22/14, two federal courts released opposing decisions regarding subsidies in the federally facilitated marketplaces. Of course, these conflicting rulings raised many questions. Both decisions are being appealed. No action will be taken to enforce the rulings in the immediate future. Premium tax credit subsidies will continue to be distributed. Those individuals who currently have subsidized coverage are not affected. Source: National Association of Health Underwriters 7/25/14.
by Brian McPike, President
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