Large Business Example #2
1. Situation
- Employer has 30 full-time employees.
- Two-thirds of the cost of the employees’ benefit plan is related to health and dental premiums.
- Health and dental claims experience in the last two years averaged only one-third of premiums paid.
- A majority of employees complained that there seemed to be more exclusions than items covered.
2. Decision
- Employer decides to withdraw from their existing health and dental plan and introduces and professionally administered Private Health Services Plan through Olympia Trust Company.
- Employer chooses to reallocate previous premium dollars in a manner that fits employee needs, not insurance company demands.
- Special consideration for employees with dependents and employees with specific health care need will be implemented.
3. Rationale for Change
- Employer has determined that the existing plan of insurance is ineffective,both in terms of cost and benefits deserved.
- Employer has determined that a more flexible plan suited to employee needs will enable employee to make informed decisions on their health care independent of an insurance carrier.