With the burden of a staggered economy weighing on employers, many are looking to cut costs while retaining benefits for their employees.
However, the rates for employee health coverage have been going up for the past few years, making health care among the first benefits to be cut entirely. Trowbridge Insurance of Pacifica California is looking to change that by teaming up with a third party administrator in an effort to save businesses money on coverage.
The third party has developed a strategy to save businesses and unions up to 30% on health insurance costs. By establishing a company owned savings account, which is used to pay deductible on a High deductible plan, the TPA is assuring that businesses can afford to provide their employees with health care without having to change carriers.
Corrin S. Trowbridge, owner of Trowbridge Insurance, says that working with the TPA has saved their customers nearly 37% on premiums. Since his company began working with the TPA, he has seen a 95% renewal rate. “The strategy being used is based on actual insight, gleaned from over 14 years of experience,” says Towbridge. The plan does not require its participants to reduce the benefits they offer employees in any way.
Group health insurance is often the second largest cost for businesses right behind salary. Towbridge is looking to change that with its new strategy and help business owners and their employees keep health coverage in spite of an economy in flux.