HERO Plan Premium Savings Example*
In the example below, the 35-person group received a 15% rate increase
on their major medical rate plan. If the group accepted the renewal, the cost
for medical coverage would increase by over $34,100 per year. The group could
not afford the renewal rates, so they looked for alternatives. The current
carrier gave a 30% rate decrease if the group changed from a $500 deductible to
a $3,000 deductible plan. When you combine a $500 deductible, $2,500 maximum
benefit HERO Plan with the $3,000 deductible major medical plan, the group has
roughly the same benefits as it currently has and a renewal cost of less than
1% more than the prior year’s plan cost.
|
Current Plan
$500 Deductible
100% Coinsurance
|
|
Number on Plan
|
|
Total Current Premium
|
|
Employee
|
$346.26
|
x
|
22
|
=
|
$7,617.72
|
|
EE + Spouse
|
$763.14
|
x
|
4
|
=
|
$3,052.56
|
|
EE + Child(ren)
|
$721.11
|
x
|
2
|
=
|
$1,442.22
|
|
EE + Family
|
$1,009.16
|
x
|
7
|
=
|
$7,064.12
|
Total current monthly premium = $19,176.62
|
Current Plan
$500 Deductible
100% Coinsurance
|
|
Number on Plan
|
|
Total Current Premium
|
|
Employee
|
$397.36
|
x
|
22
|
=
|
$8,741.92
|
|
EE + Spouse
|
$878.14
|
x
|
4
|
=
|
$3,512.56
|
|
EE + Child(ren)
|
$834.41
|
x
|
2
|
=
|
$1,668.82
|
|
EE + Family
|
$1,157.09
|
x
|
7
|
=
|
$8,099.63
|
Total renewal monthly premium = $22,022.93
|
HDHP
$3,000 Deductible
100% Coinsurance
|
|
HERO
$500 Deductible
100% Coinsurance
$2,500 Max Benefit
|
|
Total New Rates with HERO
|
|
Number on Plan
|
|
Total Current Premium
|
|
Employee
|
$278.38
|
+
|
$70.52
|
=
|
$348.90
|
x
|
22
|
=
|
$7,675.80
|
|
EE + Spouse
|
$637.30
|
+
|
$139.33
|
=
|
$776.63
|
x
|
4
|
=
|
$3,106.52
|
|
EE + Child(ren)
|
$590.56
|
+
|
$126.32
|
=
|
$716.66
|
x
|
2
|
=
|
$1,433.76
|
|
EE + Family
|
$809.75
|
+
|
$203.23
|
=
|
$1,012.98
|
x
|
7
|
=
|
$7,090.86
|
Total renewal monthly premium = $19,306.94
Total Monthly Savings = $2,715.99
Total Annual Savings = $32,591.88
* Rates and savings will vary by group. This is only an example.
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