Premium Arbitrage

The Challenge:

• Employers and their employees have reached the breaking point in funding ever-increasing health premiums;
• Employees have seen little or no wage increase;
• High deductible plan designs are neither desired nor acceptable to the workforce.

Strategies:

• The employer can keep its current plan of benefits with no changes;
• No additional underwriting required.

Bottom Line:

• An employer can experience an average reduction in premium of 5% to 10% immediately;
• The employer takes on no additional risk;
• Employees retain current benefit levels with no change in employee contributions;
• Employees keep their doctors and hospitals;
• Employees keep their pharmacy formulary;
• The employer has access to all claim data, including gross charges and provider discounts previously not available;
• Claim data access allows for determination of carrier profit/loss and serves as an underwriting screen for future renewals.

Our arbitrage strategy allows fully insured groups with low deductibles and out-of- pocket exposures to significantly reduce premiums.