Insurance consultant finds innovative solutions to reclaim dollars for employers
Health insurance consultant and agency ClaimLinx saved small business owners a total of $4.5 million on benefit costs in 2018 using its unique strategy for purchasing insurance.
For more than 15 years, ClaimLinx has been pioneering ways of saving small businesses money on benefits. In 2018, the company reached new records of savings for employers, cutting costs by 20 percent or more within the first year of a business starting its program and keeping renewal rates below 5 percent in following years.
Tom Quigley, National Benefit Consultant, said partnering with ClaimLinx is simply about the numbers.
“It all comes down to a math problem,” he said. “Do you want to pay more to an insurance company, or do you want to keep more in your pocket?”
The trick is ClaimLinx combines two types of insurance: traditional coverage from a major carrier and self-funded reimbursement coverage from the employer.
First, ClaimLinx helps companies choose a high deductible health plan from a major carrier, which includes access to a wide provider network and a stop-loss in case of high medical costs from an employee.
Then, ClaimLinx customizes a medical expense reimbursement plan funded by the employer to return benefits employees need, such as copays and a lower deductible.
The resulting plan saves business owners thousands of dollars per employee because they are paying only for services rendered, rather than prefunding major carriers’ bottom line.
In 2018, insurance companies reported strong growth, already amassing an estimated $47 billion in global profit by the end of the second quarter, according to analysis of company documents by Axios media company.
Where these premium funds end up can be a mystery for employers, but not so with ClaimLinx. The self-funded plan enables employers to track utilization, a useful tool for the future when cutting unnecessary or misused benefits.
Christy Quigley, President of ClaimLinx, wonders how small businesses continue to afford high healthcare costs. Average premium rates for a family plan from a major carrier reached $19,616 in 2018, according to the Kaiser Family Foundation Employer Health Benefits Survey.
“As a small business owner myself, I don’t know how companies keep up with premium rates without finding a solution like ours,” she said.
Date: January 3, 2019