Comments on: 10 ways to lower benefits costs http://blog.angusmcrae.com/10-ways-to-lower-benefits-costs/ Thu, 09 Sep 2010 20:39:32 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Mark Trimble http://blog.angusmcrae.com/10-ways-to-lower-benefits-costs/comment-page-1/#comment-190 Mark Trimble Wed, 12 Nov 2008 19:59:36 +0000 http://blog.angusmcrae.com/?p=60#comment-190 Angus, How would an opt-out program typically work? Mark Angus,

How would an opt-out program typically work?

Mark

]]> By: Angus McRae http://blog.angusmcrae.com/10-ways-to-lower-benefits-costs/comment-page-1/#comment-189 Angus McRae Tue, 21 Oct 2008 14:47:07 +0000 http://blog.angusmcrae.com/?p=60#comment-189 Good to hear from you, Michele. Making vision, short-term disability and sometimes even long-term disability voluntary is certainly an option. We have found that because of adverse selection the insurers raise the rates if the product is voluntary as opposed to employer paid. If the employer wants to stay cost neutral on those benefits we may encourage them to pay 100% (especially on the disability lines) and then make a corresponding decrease in contribution on the medical. This way the employer gets the lower premium rate associated with 100% ER premium payment, but isn't coming out of pocket any more than they want. Good to hear from you, Michele. Making vision, short-term disability and sometimes even long-term disability voluntary is certainly an option. We have found that because of adverse selection the insurers raise the rates if the product is voluntary as opposed to employer paid.

If the employer wants to stay cost neutral on those benefits we may encourage them to pay 100% (especially on the disability lines) and then make a corresponding decrease in contribution on the medical. This way the employer gets the lower premium rate associated with 100% ER premium payment, but isn’t coming out of pocket any more than they want.

]]> By: Michele La Motte http://blog.angusmcrae.com/10-ways-to-lower-benefits-costs/comment-page-1/#comment-188 Michele La Motte Tue, 21 Oct 2008 14:14:59 +0000 http://blog.angusmcrae.com/?p=60#comment-188 Hi Angus, I enjoy reading your blog. In the area of employers not offering vision or STD to cut costs, what are your thoughts on voluntary benefits for those coverages? In my expereince I have seen employees very happy with paying their own contributions for vision and/or STD. Best regards, Michele Hi Angus,

I enjoy reading your blog. In the area of employers not offering vision or STD to cut costs, what are your thoughts on voluntary benefits for those coverages? In my expereince I have seen employees very happy with paying their own contributions for vision and/or STD.

Best regards,
Michele

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