Risk & Business Magazine California Fall 2017 | Page 2

MULTI-CARRIER HEALTH INSURANCE BY: KEVIN TIMONE CHIEF SALES OFFICER OF ORANGE 3 A Reasons More Employers Are Moving To A Multi-carrier Program multi-carrier health insurance program offers advantages to small businesses—and their employees. That’s why more and more employers are turning to programs like the CaliforniaChoice multi-carrier, employee- choice private exchange. Essentially, it boils down to three reasons: (1) budget control, (2) employee choice (with multiple health insurance carriers), and (3) the availability of plans compliant with the Affordable Care Act (ACA). you complete control over what you spend on your employees’ health benefits, year after year. 2. EMPLOYEE CHOICE, MULTIPLE INSURANCE CARRIERS Unlike purchasing health insurance directly from a health insurance carrier, with an exchange like CaliforniaChoice, you and your employees have a selection of different, top-rated carriers. (CaliforniaChoice offers seven different insurer options.) 1. BUDGET CONTROL Controlling healthcare costs is easy with Defined Contribution. You decide how much you want to contribute toward your employees’ healthcare benefits. You can select a Fixed Percentage (50 percent to 100 percent) of a specific health plan and/ or benefit, or you can contribute a Fixed Dollar Amount for each employee. For example, one of your employees might choose a PPO from Anthem Blue Cross because of a particular doctor or hospital in the Anthem network, while another employee who rarely visits the doctor might choose an HMO from Kaiser Permanente. A third employee might choose an HSA-compatible HMO from UnitedHealthcare because of cost and tax considerations. Your employees then apply your generous contribution to whichever health plan and benefits they prefer. If an employee selects a plan that costs more than your contribution, he or she pays the difference. It’s that simple. Offering this level of choice—without increasing your costs as compared to a single health plan solution—gives you a recruiting advantage and a powerful tool to retain your current employees. At renewal, you have the option to adjust your contribution—up or down—giving 2 3. ACA-COMPLIANT PLANS A multi-carrier program ensures your health insurance benefits are compliant with the requirements of the Affordable Care Act (ACA). You can choose from a variety of full and limited healthcare provider networks, giving you and your employees access to the doctors, specialists, and hospitals you all want at the best possible price point. With CaliforniaChoice, you can choose one ACA metal tier or two. You can select either a Platinum, Gold, Silver, or Bronze plan or a Tiered Choice plan, which gives you access to two metal tiers (Platinum/ Gold, Gold/Silver, or Silver/Bronze). This can significantly increase the number of plans and doctors you and your employees can use. For more information about offering your employees access to multiple health insurance carriers in a single program, talk to your broker or visit www.mycalchoice.com to find a CaliforniaChoice broker in your area. + Kevin Timone is the Chief Sales Officer of Orange, California-based CHOICE Administrators, the nation’s leader in developing and administering group employee-choice health insurance exchanges.