Healthcare is the most out of control cost for any business. It is also the number one reason for a person to file bankruptcy, and 75% of these people who file have health insurance! There are no benefits in healthcare anymore. The longer you are on your plan, the coverage only gets worse under the current model.
Real Benefits Group CEO
The small employer has received relentless rate increases. It is getting to the point a small business is not able to offer benefits. Employees are beginning to feel there is no longer protection in benefits. We cannot wait for legislation to save us. We must become an active participant in our own rescue.
We don’t sell our services to our clients, we ask them to join with us to solve this problem together. Instead of paying the high rate increases created by the Affordable Care Act, how about this:
We work together to reduce the cost of medical care?
We join together on a better payroll system?
We stop risking so much with HR and prevent problems?
We are not offering discounted services. We are simply making businesses aware they have been overpaying for the services they receive. Our program is not available through your insurance broker.
We believe our program will bring you more value – with the promise of even greater value in the future. We will work hard for you. Our program needs good clients like you.
Real Benefits Group will take your current healthcare budget and propose a different solution for covering the cost. We believe we can stabilize the cost of healthcare over a 5-year period. Medical benefits will improve and your employees will become stakeholders in the success of your company.
The 5-Year Graph Explained
We are pooling administrative services. This pooling process will help you in addition to your savings on benefits.
Our medical rates are generally 20% below the current small group marketplace now. That margin of savings will continue to grow in the coming years.
As we grow this group, we will be able to make a positive effect on the renewal rates you will pay. Most importantly, Real Benefits Group will stabilize medical and administrative cost for you in the future.
Our telemedicine, disease management and wellness programs will have a dramatic effect on our claims utilization. Our projected improvement on the dollars paid for claims in our group will come right back to our clients in the form of lower premiums. This is not available to small businesses in the Affordable Care Act marketplace where improved claims experience will not help you at renewal time.
Both small and large companies have their insurance rates determined based on the average age of their group participants. See the chart below:
|Average Age||Large Group Real Benefits Group||Small Group 2 - 50 employees|
|High Age||5X Low tier||3X Low tier|
|Med-High||4X Low tier||2X Low tier|
|Medium||3X Low tier||Lowest rate tier|
|Med-Low||2X Low tier|
|Low Age||Lowest rate tier|
Prior to the enactment of the Affordable Care Act, both small and large companies were based on 5 age categories – from young average age groups to older age groups. A company who has their average age fall in the highest age bracket received the highest rates, but those rates could not be more than 5 times the rates of the youngest age group.
The ACA Aftershock
The Affordable Care Act has changed the age tiers for a small business while leaving large companies as they were. In only the small group marketplace, an effort was made to stabilize the rates for the highest age groups. The Affordable Care Act was structured to increase the cost for the younger groups to subsidize the older groups. This was accomplished by shrinking the 5 age tiers down to only 3.
A large company, like Real Benefits Group, still has access to a 5 tier age structure. This allows a small business with a younger workforce to access a lower rate structure – one that is no longer available in the small group marketplace.