Having been in the group benefits field for over 20 years Schmidt + Funk has seen many of our smaller business clients grow to become successful large companies. With this growth came an increased demand for greater cost control and improved plan flexibility. It became clear that the traditional insurance model whereby the employer pays a non-refundable premium to the insurance company in exchange for benefits and to assume the risk was neither efficient nor cost effective. In addition it did not provide the flexibility that our larger clients needed so we went in search for a company that understood these unique needs. We have partnered with some insurance companies to find the best solutions.
With these companies we are able to provide our clients with insurance coverage where it is required; Life, Accidental Death and Dismemberment, Long Term Disability and Critical Illness. This is needed because these costs cannot be anticipated and can be very large. However, with Extended Health and Dental benefits our recommendation is to self insure and to protect for unexpected claims with stop loss provisions. This is done by analyzing past claims experience and establishing proper funding levels to deal with ongoing claims. The Insurance Company charges an administration fee to adjudicate and pay claims on behalf of the employer and does so at a cost that is lower than the larger insurance companies. In addition, to protect our client from unexpected larger prescription drug and medical costs we establish Stop Loss Coverage that caps these costs and we also build in Out of Country costs in the event of emergency medical.
If you are a larger business and are tired of the traditional insurance model for dealing with your group benefits please give Schmidt + Funk a call to arrange a meeting and to see if your business is right for this change.
Benefit Plans for Large Companies provide:
- Increased Control
- Plan Flexibility
- Improved Cash Flow
- Efficient Plan Management