The picture above says it all – it seems like these days, we have better coverage for our possessions than we do for ourselves – take a step back for a second and think about that…..THAT’S INSANE!!! Granted, it costs a lot more to insure our health….a new phone may cost $300-$500 ( if you’re lucky ), so insuring it would be pretty cheap, but just a night’s inpatient stay in a hospital is roughly $10,000….bottom line – the rising cost of healthcare forces our premiums to go up each year.
Over the last several weeks, I’ve showed you various ways to offset these high premium costs while helping to trim down the deductible, so that $10,000 inpatient hospital stay doesn’t hurt your wallet as much. What if I told you that the product I want to talk about today could essentially eliminate your deductible for that $10,000 inpatient stay??? Yep – no gimmicks here – it’s the real deal. The product is called Beazley and this product can help put the smile back on the faces of your employees!!!
2 weeks ago, I talked about the HRA scenario where you buy a high deductible to lower your monthly premium and then fund a part of the deductible with employer money. With Beazley, you still purchase the high deductible plan to lower your monthly premiums, but then you purchase a Beazley plan to cover the first part of that new deductible for your inpatient and outpatient procedures……let me say that again…..Beazley covers the FIRST PART of your deductible. Over the past 2 weeks, I’ve talked about plans that can cover the “back” end of the deductible only after the employee has satisfied a portion of their deductible….with Beazley, the employee DOES NOT have to satisfy any portion of their deductible first – Beazley kicks in from the first inpatient or outpatient covered claim!!!
Here’s an example:
- Employer currently has a $3,000 deductible, 100% coinsurance plan – the employees are not happy with this plan as they feel the deductible is too high
- To lower the premium, the employer purchases a $6,000 deductible, 100% plan
- The employer then purchases a $6,000 inpatient, $3,000 outpatient Beazley plan
- The cost of the Beazley plans + the $6,000 deductible medical plan ends up costing LESS than the old $3,000 deductible medical plan!!
- Beazley is now covering $6,000 of covered inpatient charges and $3,000 of covered outpatient charges under the $6,000 medical deductible!!
Now for the employee experience:
- Employee #1 goes into the hospital for a 2 day surgery – the cost is $20,000 and he has the above mentioned $6,000 deductible…normally, he would pay the $6,000 deductible, BUT since he has Beazley, Beazley uses their purchased inpatient benefit and pays the full $6,000!!! The employee pays $0 out of pocket!!
- Employee #2 goes in for a minor outpatient procedure that costs $2,500 – with their old $3,000 deductible plan, they would have paid the full $2,500…..with the new Beazley plan, Beazley will pick up the first $3,000 of covered outpatient charges of the underlying $6,000 deductible, so in this scenario, again, the employee will pay $0!!!
- Employee #3 has a bit more intensive of an outpatient surgery and has a bill for $4,000….under her old plan, she would have paid $3,000, but with the new Beazley plan, Beazley will pick up the first $3,000 of covered outpatient procedures, so she now only has to pay $1,000!! ( $4,000 – $3,000 Beazley = $1,000 )
I know this seems too good to be true, but it’s not – this is all legit and Beazley has been around for quite a while!!! This strategy is fantastic for employers that want to attract, retain, or substantially increase benefits for their employees. If you have any questions on this strategy, feel free to email me or give me a call – I’m always happy to help!!!
Have a great weekend and GO BUCKS!!!!