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Library >> Health Reimbursement Arrangements >> How can ZaneHRA lower the monthly premium of our existing group policy by 50%, starting next month, without changing carriers?
How can ZaneHRA lower the monthly premium of our existing group policy by 50%, starting next month, without changing carriers?
Note: Your existing group health insurance broker may not want to do this because it also reduces the commission they receive by 50%.
Here’s how you can reduce the premium of your existing group policy by approximately 50%, starting next month, if you already have a group policy with an annual deductible of less than $1,500/year:
- Call your insurance carrier directly and raise your annual deductible of your policy, starting next month, to between $3,500 and $5,000/year. This will typically lower your total employer monthly premium by 50% or more.
- Sign Up and use ZaneHRA to reimburse your employees for 100% of the increased medical expenses they incur because of the higher annual deductible. These same-day, real-time, reimbursements will cost your company approximately 2/5 of your net 50% premiums savings, for an overall savings of approximately 30% if you keep the same benefits for each employee.
- If you keep the same dollar amounts of employee participation for dependents, your company could reduce the employer (only) benefits cost by 75% or more.
- Customize the benefits in ZaneHRA for each class of employees to maximize Recruiting and Retention of key person.
Even if you are concerned with managing your minimum group plan participation level in order to renew your group policy, you should offer dependents of group plan participants a ZaneHRA option for personal policies. Most carriers do not count dependents towards renewal percentages. This could dramatically increase the take-home pay of your employees while greatly improving Recruiting and Retention.
This document has been prepared solely for the purpose of providing information based on legal and tax advice provided to Zane Benefits, Inc. However, it is not meant to provide legal or tax advice for entities other than Zane Benefits. No representation is made as to the completeness or accuracy of the information herein. As such, it should not be used as a substitute for consultation with professional employment law specialists, tax accountants, attorneys, or other advisors. To comply with U.S. Treasury Regulations, we inform you that, unless expressly stated otherwise, any tax information contained in this communication is not intended to be used and cannot be used by any taxpayer to avoid penalties under the Internal Revenue Code.