WHAT IS COLLABORATIVE HEALTHCARE?
Today’s health insurance marketplace offers few plan options to help employers manage costs while enhancing the benefits they provide. For this reason, Collaborative Healthcare has created a national health insurance program offering employers the flexibility and rewards of self-funding while at the same time offering the same protections found within fully insured benefit plans.
Most employers pay their monthly insurance bill without ever knowing where the money goes. With the Collaborative Healthcare Insurance plan, transparency is key to understanding costs and managing them more effectively. Within every health insurance policy have three parts:
- Claims Administration
- Large Claims Pooling/Reinsurance
- Transactional claims funding
Tack on insurance company prof its bundled with these three parts and you have health insurance premiums. At Collaborative Healthcare we believe the employer should be in the driver’s seat, understanding each of the three parts of their health insurance premium so they can better understand the value of what they are purchasing. This allows employers along with their advisors to manage their plan more effectively and efficiently.
The value of the fully insured market is providing employers with the ability to transfer the cost of their risk for high claimants during bad claim years. The trade off, however is that in good claim years, the insurance company gest to keep the money deposited into the transactional claims fund. We refer to this as “Heads they win, tails I lose.”
Through Collaborative Healthcare’s national program,the portion of premium typically set aside by the fully insured carrier to pool funds to pay large claims is instead used to purchase protection from large claimants. That protection is rated based on all of the other participating companies. This allows employers to share in their large risk during poor claim years, but keep their premiums set aside to pay claims not incurred during good claim years.
Since inception, the plans offered by Collaborative Healthcare have provided an average savings in the first year over 10% with renewals averaging less than 5%. The reason for this is simple, carrier waste is removed from premiums and employers participating within the program are provided with the tools and data they need to make informed, strategic decisions surrounding their Healthcare.