One option doesn’t always cut it when it comes to health insurance quotes for small groups. While one group will be perfectly suited for a fully-insured plan, that may not be nearly as effective for some of your other groups. One way to provide extra value to your groups is to diversify their plan options.
Why Brokers Should Quote Multiple Product Types
By quoting more plans for your small groups, they can see for themselves which solution is a great fit for their group. They’ll also know that you aren’t just making them follow the same insurance quoting path as everyone else. Not only does this allow them to invest in a more competitive plan at a better rate, it helps engender trust in your services and make you look great in the process. These include:
• Fully-insured ACA plans
• Self-funded plans
• Partially self-funded plans
• Level-funded plans
Each one of these plan types has its advantages. Fully-insured is a safe route for older, less healthy groups, but it can also invite higher rates than some other plans. Self-funded plans can be a good health insurance option for many small groups, as they tend to allow younger, healthier groups to receive better rates than what’s available through fully-insured products. However, fully self-funding is risky, as that small employer would be on the hook for any catastrophic claims during the year.
A partially self-funded plan offers a combination of lower rates for young, healthy groups and protection from catastrophic claims. These plans include stop loss insurance, which limits an employer’s total risk without sacrificing access to more competitive plans are a lower price point. Level-funded plans are another intriguing option for small groups, as a Carrier will use census information to determine a level monthly payment rate based on claims allowances, fees, and premiums for stop loss coverage. At the end of the year, this level is adjusted based on the group’s past performance.
How FormFire Helps Brokers Quote Different Product Types
Of course, pulling multiple quotes can take time, especially if you go through the quoting process manually. Fortunately, FormFire helps Carriers and Brokers examine the risks of the group for purposes of deciding which funding strategy would work best for the group.
FormFire’s health insurance quoting software provides professionals with a suite of tools that simplify the quoting process for every type of quoting type. FormFire’s estimation tools allow you to generate possible fully-insured plan rates based off of a census. For self-funded and level funded plans that require medical underwriting, FormFire has a variety of tools that streamline the process of collecting small group information.
With this technology, Brokers can diversify quoting for their groups without sacrificing valuable time that can be used to work with additional employers. Request a demo of our software today to see how the FormFire system can add value for you and your groups.