Medical: From the year 2000 to 2007, medical insurance costs have escalated on average 80%. For each company there is a different solution on how to handle this important benefit. Here are some key areas of strategies:

Data Analysis: Data Analysis includes knowing the demographic make-up of your group and how the healthcare plan is being used. The strength in negotiating the cost of a program is to understand the art of underwriting risks and setting the proper price. Black Diamond Solutions, LLC analyzes this information for each client and policy.

Consumer Driven Healthcare: This program provides significant dollar savings by placing a high deducible for all healthcare and prescription drug expenses. (Generally the deductible and coinsurance is waived for preventive care.) A tax-advantaged benefit is put into place to help offset the higher out-of-pocket exposure for employees and dependents. The set-up of the program promotes consumer responsibility in choosing how to spend healthcare dollars. Vital to the success of the plan is education through employee communication.

Cost Sharing Managed Care Programs: These fully-insured programs offer significant premium reductions to employers and employees who contribute to the cost of the medical plan. Both in-network copays and coinsurance are applied to contain costs. A tax-advantaged benefit plan may be implemented to effectively handle out-of-pocket expenses.

Alternative Funding: This approach can reap savings and allow a customer to take more control of their medical program. Partial Self-Funding also brings added risk. Before venturing down the path toward alternative funding, please take time to examine the various contracts. Understand the differences between aggregate and specific insurance and what claims count toward satisfying these limits as well as during what timeframe. Purchasing insufficient coverage has bankrupt businesses in the past. The contracts can be tricky. Black Diamond Solutions, LLC will assist you in analyzing the various types of contracts so that you know how you are covered if/when claims experience turns bad.

Wellness Incentive Plans and Disease Management: Wellness Programs implemented by large corporations have shown great savings in Lower Absenteeism, Higher Productivity, and Lower Healthcare Costs. Obesity, Poor Nutrition, Lack of Exercise, Smoking and Drinking are strongly linked to serious diseases; such as diabetes and heart conditions. Through education and wellness incentives, large employers are lowering the trend of medical claims.
Through Health Risk Assessments and Claims Analysis, it is determined who has chronic health conditions. Disease Management educates those insureds and how to best handle their chronic condition so that the best results are experienced. The best results include a happier, healthier employee/dependent and lower medical costs.

Prescription Drug: For Mid-sized companies, prescription drug coverage doesn't have to be bundled together with the medical insurance. Many companies have carved-out the prescription drug benefit and insured the benefit separately whether on a fully-insured basis or alternatively funded. This strategy is important to consider.

Dental: Dental Insurance is one of the more popular employee benefits. Choose from a number of different approaches from The Traditional plan with freedom of choice and benefits subject to deductible and maximum annual amount to a PPO or HMO option where there is no maximum benefit amount if utilizing the provider network. For medium-sized companies, there are some wonderful programs to self-fund the dental program and save on premium.
Buyer Beware! Know how different services are covered. A dental plan may look like it is saving money yet some services have been dropped to either Basic or Major Services levels reducing the coinsurance amount the plan will pay.

Vision: Routine eye exams are not only about vision. Serious diseases can be detected through the blood vessels through your eyes. Early intervention can save lives. Vision plans are offered either as a stand alone program or can be bundled with the medical insurance program. Covered expenditures include annual eye exam, lenses, contact lenses and frames.

Life and Ad&d: One of the least expensive employee benefits can also be one the most important one. The death of an employee can financially and emotionally ruin his/her family especially in situations where the employee is the sole earner in the household. Many employees do not obtain life insurance on their own and completely rely on the insurance program offered by the employer. Amounts up to $50,000 in life and accidental, death and dismemberment insurance can be tax free to both the employee and employer. We recommend reviewing this benefit to ensure your employees are in good hands.

Disability: People buy insurance for their homes, cars, jewelry, etc. What supports the purchase of these items as well as the insurance to protect the value of these items? Their Income!! If an accident or sickness disables an employee so that they are unable to earn income, all the items supported by their income disappear.
From a different perspective… As an employer how do you handle a situation where an employee is disabled? Do you continue their salary? How long? Can you afford to temporarily or permanently hire a replacement? Understanding the importance of disability insurance is the first step.
The second step is to implement a disability program that will provide the proper coverage at the right cost. Disability contracts are complicated and vary dramatically. Expert advice is needed to understand the key components of a Disability Policy. Frequently unknown terms of importance include 70% all sources versus primary or full family integration; also important are Residual, Occupation and Partial Disability Definitions. Know that the price is appropriate for the coverage and contract language.

Long Term Care: Long Term Care should not be confused with Disability Insurance. Disability Insurance protects the income bearing years of an insured and essentially replaces the income during periods of disability. Long Term Care picks up where medical insurance leaves off. Long Term Care Insurance provides financial support when a person is not able to accomplish the 6 Activities of Daily Living and requires assistance of a nursing home, home healthcare aid or family member. A Group Long Term Care Plan allows employees to purchase insurance for themselves, grandparents, parents, spouse, and siblings.

Employee Voluntary Benefits: No cost to the employer!!! Great benefits for the employee!! Voluntary Benefits allow employees to complete their benefits needs. Advantages include lower costs, access to coverage not available to individuals, payroll deduction and convenience in purchasing. One customer raved, "Our employees are so excited about their new plan you would think that we are paying for it!"