Prepared for:
Sample Company
Reducing Costs and Holding Them Steady While Employees Get Healthy
Reducing Costs and Holding Them Steady The Controlled Healthcare Budget™ is built upon 3 principles. 1) Immediately reduces the healthcare costs of the employer 2) Hold these costs steady for a number of years 3) Betters the benefits for at least 91% of employees Without causing war and insurrection. The Controlled Healthcare Budget was created to bridge the gap between where you are with your healthcare plan and where you want to be. For years employees have ranked healthcare as their number one benefit while employers rank escalating healthcare costs as their number one problem.
Employers know that the best way to reduce their healthcare expenses is to build a healthier workforce. Employers also know that building this healthy workforce takes time.
How can the Controlled Healthcare Budget Help today? The Controlled Healthcare Budget is designed to include
The premiums on these plans with higher out-of-pocket costs
higher out-of-pocket health plans for employees that are
save thousands for you as the employer – so much so that you
supplemented with integrated Gap Benefits. This Gap Benefit
still receive significant savings when the Gap Expense is added
provides first dollar coverage offsetting all or portions of
into the equation.
the increased out-of-pocket exposure to the majority of the
PREPARED FOR:
covered population.
Offset out-of-pocket expenses with the Controlled Healthcare Budget.
While Your Employees Get Healthy Let’s see how the Controlled healthcare budget’s 3 principles are put into action. 1) Reduce Costs Immediately. As you can see in the yellow lines of the chart below, dollars are saved right away in year one. 2) Hold Costs Steady over a Number of Years. 3) Betters the benefits for at least 91% of employees without causing war and insurRection. Your employees don’t lose out on their coverage. The first dollar coverage provided by the Gap Benefit means that 91% or more of your employees will actually receive better coverage on the Controlled Healthcare Budget proposed plan than they did under their previous healthcare plan. Your rates are reduced, held steady and the Controlled Healthcare Budget provides better coverage for less.
PROPOSED THREE YEAR PLAN DESIGN FOR WITH 75 EMPLOYEES PREMIUM EXPENSES FOR CURRENT PLAN
PROPOSED YEAR 1
PROPOSED YEAR 2
PROPOSED YEAR 3
Expected Premiums with Current Plan
$525,000
$588,000
$658,560
Expected Premiums with Proposed Plan
$425,250
$408,165
$380,215
$1,000
$2,000
$3,000
$4,000
80%
80%
80%
70%
Maximum Coinsurance Level
$10,000
$10,000
$15,000
$15,000
Maximum Employee Coinsurance O.O.P.
$2,000
$2,000
$3,000
$4,500
Total Single O.O.P. Maximum
$3,000
$4,000
$6,000
$8,500
Total Family O.O.P. Maximum
$6,000
$8,000
$12,000
$17,000
Inpatient Benefit - Single
$2,000
$3,000
$4,500
Outpatient Benefit - Single
$1,000
$1,500
$2,250
Family Benefit
$9,000
$13,500
$20,250
$64,703
$81,830
$109,822
$1,000
$1,500
$1,750
$2,000
$1,500
$1,250
$0
$0
$0
$6,000
$6,000
$6,000
Expected Expenses with Current Plan (premium only)
$525,000
$588,000
$658,560
Expected Expenses with Proposed Plan (premium + gap benefit)
$489,953
$489,995
$490,036
$35,047
$98,005
$168,524
6.7%
16.7%
25.6%
Information on Current Plan vs. Proposed Plan Deductible Coinsurance %
Gap Benefit
ABC Company Expense for Gap Premium Net Employee Out-of-Pocket Maximum* Single
$3,000
Single Employee Net Expense or (Savings) Family Family Net Expense or (Savings)
$6,000
Total Expenses for ABC Company
Net Projected Savings in Dollars Net Projected Savings as a Percentage * Reflects full utilization of Gap inpatient & outpatient benefit.
[email protected]
Key Benefit Administrators
Ken Law
TPA Information
healthcare costs long-term.
can work on creating a healthier lifestyle. These two things will work toward reducing your
plan. During this time, you are able to work on building a healthier workforce and employees
years and 91% of your workforce receives better coverage than they had with their previous
With the Controlled Healthcare Budget, your rates are reduced, held steady over a number of
San Diego, Ca
Sample Company
Controlled Healthcare Budget is a Patent Pending process of Key Benefit Administrators, Inc.
The Controlled Healthcare Budget is the bridge that gets your healthcare plan from where it is to where you want it to be.
