COO
Andrew graduated from the University of Mississippi with B.S. in Marketing and Management. He has over 20 years of professional inside and outside sales experience serving the business-to-consumer, business-tobusiness, insurance and automotive markets. After college Andrew began his career as the Director of Sales and Marketing for an action sports company. After 3 years Andrew would go on to spend the next 6 years in the insurance sector, working primarily within health and life. For the past 12 years Andrew has worked in the automotive industry with the largest car buyer in the United States. He dealt with automotive groups across the country with a primary focus on the South Florida market
Managing Director
Harrison Nance has over a decade of experience as an operator, business development and sales professional, and operations specialist in the professional services and real estate industries. Harrison is licensed in Life, Accident, Health & HMO, and his focus is building 1st Fiduciary into a multi-state commercial operation. Harrison graduated from St. Edward’s University in Austin, Texas with honors in Finance and Entrepreneurship.
1st Fiduciary Programs resemble hybrids of traditional small group health insurance plans and self-insurance. This allows mid-sized businesses to step outside of the ACA and provide their own health benefits. Quality health insurance carriers with a rating of A- or better (A.M. Best) handle the program administration. These plans typically include a stop-loss insurance policy that acts as a hedge against claims over the total funded amount monthly. Other benefits could include monthly premium savings of 30% or more, as well as a potential year end refund. 50% of businesses across the U.S. see refunds on these types of programs – and refund amounts are typically 2 months premiums.
Not unlike a traditional group plans, level-funded benefits programs have a set, or level, monthly premium throughout the year. Premiums are divided into three buckets. One-third pays employee claims, another third goes to plan administration, and the final third pays for stop-loss coverage. Stop loss protects business owners from self-insurance risks.
Unused portions of the claims fund may be refunded if unused by the end of the year. Plan administration costs and stop-loss premiums are not refundable.
Level-funded programs are utilization based in most cases, so businesses with healthier or younger employees could potentially save even more. Should businesses exhaust a claims fund, employers are 100% protected by a stop-loss policy on claims over the annual funded amount.
Level-funded programs do not pay premiums calculated with a community risk pool. Obamacare forces traditional group health plan participants into a large, potentially riskier group when forecasting claims. This is especially painful for mid-sized businesses. Level funding keeps premiums lower in some cases, because a company’s risk is lower than the general population.
Level-funded programs allow businesses to recoup unused claims set asides. Traditional group plan premiums are nonrefundable. In addition, level-funded programs include utilization reports, so business owners have detailed information about overspending. If used properly, this information could save the company even more. For example, employees could be reminded that urgent care facilities have lower claims than emergency room visits.
Call us to see how level-funded programs could benefit your mid-sized business.
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