Skinny Plans-A Solution for Play or Pay

August 21, 2014

If you are a member of the Health Underwriters, you may have noticed a recent article entitled Large Employers Like Skinny Plans.  Skinny plans, or Minimum Essential Coverage plans are indeed one legitimate solution to the play or pay dilemma facing large employers this Fall. 

 

Due to a loophole in the law, employers can offer a stripped down benefit for right around $55 monthly and avoid the $2000 penalty.  But there's definitely a catch.  Employees who refuse this product offering can still go to the exchange and if they access subsidized coverage, the employer will realize the $3000 fine.  Those who stay will satisfy the individual mandate however the benefits are well. . . skinny.  In most cases the benefits are limited to the preventive benefit under the ACA.  

 

The carrier we use to quote these plans is Century Healthcare.  Century has been in the limited medical benefits field for fifteen years.  Their biggest clients include Steak and Shake and Chik Fil A and they are underwritten by Companion Life on A+ paper.  We like CHC because they are easily the most flexible in the marketplace.  They will write the MEC only apart and they can write it mixed with limited medical plans.  Some other details include:

 

•             Fully customized Limited Benefit Medical plans that we can build from $50 to $500 on the EE only rate.

 

•             No medical underwriting, the limited benefit medical & MEC plans are guarantee issue.

•             Only 25 employees needed to enroll; we do not ask for a wage & tax report.

•             All of our plans pay first dollar benefits (NO deductibles & NO co-insurance).

•             The plans are COBRA eligible and we administer COBRA free of charge.

•             Century Healthcare pays a level 10% commission on both 1st year and renewal.

•             PHCS PPO network.

•             The product is written on “A+” paper from Companion Life Insurance Co.

•             Available to full-time employees, part-time employees and 1099 contractors. The employer defines eligibility.

 

The industries to target include:  nursing homes, home healthcare, restaurants, hotels, salons, staffing firms, janitorial firms, security guard firms, retail, manufacturing and any industry that employs large numbers of hourly workers.  

 

There are certainly more details to discuss when it comes to these plans but here are some resources to get you started:

 

Benefits Pro Magazine Overview on Skinny Plans

 

Wall Street Journal Article on the Plans

 

Overview of Century Healthcare

 

Please give me a call and we can either discuss our options or meet face-to-face.  

 

Dominic

616.481.8675

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