The Rowland Agency; About Us

How does it work?

Shared funding plans provide employers the opportunity to save on health care expenses by directly funding expected claims and buying insurance only for excess claims. These plans offer value for all employers that are disadvantaged by community rated plans. Business owners in California pay substantially higher premiums to subsidize groups with health problems. Shared funding is designed to provide an alternative that helps your business capitalize on your good health and low health care costs by actively participating in gaining control over your health insurance expenses.

Why it works

In every group of people regardless of the number, if you have 5 employees, 50 employees, or 250 employees.

50-70% won’t use their health plan
A Small group seldom uses the plan except for a sprain, Rx or some other incidental treatment.
A very small percentage (4-7%) may use a great deal of health care for a chronic condition, an accident, a pregnancy, etc. This small percentage of employees will not impact the potential savings to the plan.
Expected claims are based on a history of over 2,500 groups currently enrolled with Ben-e-lect.

Total Cost of Insurance

Since insurance companies charge as a percentage of premium then the deferral or reduction of the premiums provides the employer direct and indirect savings.

Direct savings-reduction or elimination of specific insurance company charges

Indirect savings - gained through the more profitable corporate use of monies that are normally are held by the insurance company.

Reduction of premiums reduces expenses.

What is Shared Funding?