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Tricks of the Trade

Associated Insurance Benefits LLC 860-621-7766

www.SouthingtonHealthInsurance.com

Southington, CT

1. Making a group of 2 employees into a group of 3 employees
1. Groups of 3 pay approx 20% less per person than groups with 2 empl.
2. The third employee can be a spouse active in the business split into two singles at the renewal month, joined back together as employee/spouse coverage for the other 11 months
3. The third employee can be an employee who doesn’t really need the coverage. Ideally an age 20’s single male is added onto a very high deductible plan for the renewal month, termed the following month.
4. This works with every carrier except ConnectiCare, where it is not necessary to do this to get the 3 rate.

Example:

Annual Savings is $2876 for the exact same coverage!

1. Insure the younger spouse
1. For owners with a spouse in a lower 5-yr age bracket.
2. Make spouse a legit employee or owner
3. Place insurance on them with owner as dependent
4. Owner 58 family rate $2052, 49 yr old spouse rate $1531 a $6250 savings
2. Short renew
1. When an older, especially family coverage, employee will change age bracket just prior to the next renewal date
2. Change carrier the month before the employee’s age-bracket changing birthday.
3. This locks in that lower rate for the next 12 months
4. Exmple age 60 family rate $2419 vs. age 59 rate $2052 a $4400 savings
3. Individual Insurance
1. Individual coverage is less expensive because:

• Medical underwriting allows cherry picking
• Limited prescription coverage, most have no maternity, invitro

1. The coverage can be as good as group, other than the items above
2. Use for last dependent child on group family coverage
3. Use for healthy self employed and employees
4. Downsides:

• Future employees cannot simply add to plan.
• Rates normally increase Jan 1
• Deductibles are always calendar year