allied funding advantage how alternative funding works
TRANSCRIPT
Allied™ Funding AdvantageHow Alternative Funding Works
Why Funding Advantage?
Do your group health clients want to receive a refund for being
healthy?
YES!Alternative Funding is the
answer!
Fully Insured or Self Insured?
Fully Insured Risk Bearer is the Insurance Company Premium covers all risks and costs
Self Insured Risk Bearer is the Employer Claims are paid from Employer funds Employer pays for claims
administration
Alternative Funding
Also called Partial Self-Funding
Employer is still the risk bearer
Employer purchases Stop Loss Insurance to protect against high claims
Specific Stop Loss Claims paid by carrier when an individual’s claims exceed a
set dollar amount Aggregate Stop Loss
Claims paid by carrier when the group’s total claims exceed a set dollar amount
Employer’s risk minimized
Stop Loss Insurance
Why Consider Self Funding Sales?
55% of all companies are fully or partially self funded
Only 13% of employers with 200 or less employees are self or partially funded
Staying Power Employers that self fund remain
doing so on average of 3 to 5 years
Opportunity Market is untapped for small group
employers
Savings Chance for employers to save and
take control of their health plan
What is Allied Funding Advantage?
An alternative funding plan for groups of 10 to 99
Limits employer risk from self-funding
Allows employer to save significant dollars Monthly costs may be less than fully-insured premiums Potential for refunds at end of plan year
The only risk is not getting a
refund at the end of the year!
How Does it Work?
Monthly Costs Employer makes monthly contributions for each of
these three items:
Funding Advantage Monthly Costs
Stop Loss Insurance Covers both Specific and
Aggregate Coverage Costs vary with plan
benefits selected Funding Advantage has set
levels for Specific & Aggregate to keep sales process simple
Admin & Sales Allied claims paying and reporting expenses Agent & General Agent Sales
Compensation
Funding Advantage Monthly Costs
Claim Fund – Employer’s Money Employer contributions used
to fund expected claim costs MAX funded plan
Employers’ MAXIMUM claim costs for the year
Monthly contributions are 1/12 of this annual cost each month
MAX funded - Employer will NEVER be charged more than this for claims
Claims Fund money left over is the employers!
Claim Fund Questions Accommodation
When claims exceed money in claim fund – Insurer loans employer money
Reporting Detailed monthly reporting showing
claim fund activity Plan Year and Claims Run Out
Plan year is 12 months Claims incurred during plan year are
payable for 9 months past end of plan year
At end of the 9-month run-out – all remaining claims funds belong to employer!
No hidden terminal liability costs
Funding Advantage Monthly Costs
ERISA Plan
ERISA plan is the plan of benefits for the employee
Funding Advantage Options Premium Advantage Plans
Traditional PPO HSA Qualified Plans Indemnity Freedom Plans
No networks – no penalties True freedom of provider choice No balance billing
Allied Funding Advantage
Advantages for Employer Limits the risk of self funding Lowers monthly costs Healthy groups can receive LARGE
refunds Won’t be subject to the ObamaCare
“rate shocks” that will happen in 2014
Allied Funding Advantage
Advantages For Agents Available for small groups 10 to 99 Not subject to MLR regulations
No restrictions on Compensation! Compensation paid on full monthly costs.
Take advantage of group trend toward self-funding with a simple, flexible plan
Phone: (888) 767-7133Fax: (913) 945-4396
Quote E-mail: [email protected]
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Web site:www.alliednational.co
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The RIGHT Benefits. The RIGHT Price.
GET YOUR ADVANTAGE TODAY!