Do You Want to Pay the Anticipated Cost or the Maximum Cost?

Do you know what keeps you on top?

Many entrepreneurs and “household brands” can find themselves at the top of their industry for a year or two — But do you know what the difference is between the titans and the one-hit-wonders?

Innovation and Crazy Ideas…

What we are going to share today is a crazy idea about … healthcare costs.

Every plan -fully insured, self-funded, level-funded, pay-as-you-go… whatever you want to call it… has an expected amount of claims and a maximum amount of claims (corridor!) before the reinsurance kicks in.

Yes, you have reinsurance even if you are fully insured – it is just opaque to you, the beneficiary is the insurance company.

Here is an example (with round numbers for ease of use!) of a fully insured plan calculation

Assume 100 employees and $500/monthly premium

Claims fund (annual)


Reinsurance cost (annual)


Admin, pooling, misc  (annual)


Total costs (annual)


On a bad year, you might spend that whole $360,000… or maybe more (and reinsurance would pay the overage)

On an average year, you might spend $288,000

On a good year, you might spend $200,000

What if you could KEEP the amount of unspent expected claims?

That was a mouthful, right!

Seriously… what if you kept the unspent dollars??

Could be $160,000??? Would you rather keep that, or let is stay in someone else’s pocket?

It might just give you the edge you need to expand, grow… or even stay open in this environment!

Listen in for a more detail….

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