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The Rowland Agency specializes in Defined Contribution Medical Plans.

Q; What are Defined Contribution Medical Plans? 

A; Defined contribution allows employers to establish an annual dollar contribution amount per employee to spend on all health care plan coverage. 

The Rowland Agency also specializes in Alternative Funding.

Q; How does it work?

A: An employer will pay a health carrier the same monthly premium for each employee. That premium will include expected claims, the insurance carriers stop-loss coverage. ( It protects the employer for claims that exceed a certain amount), and all administration.  If the employer's total claims are lower than expected the carrier makes adjustments at the end of the plan year in the form of a refund  to the employer. You get to test self-funding without the risk. 

Q; What is Partial Self-Funding or Shared Funding?

A; Self-Funding or Shared funding is a type of plan where an  employer shares in the risk with the insurance company. The employer will opt for a high deductible plan, such as a $5,000 or $10,000 deductible and will cover all of the claims under the deductible. A Third Party Administrator will process all  claims and provide an accurate accounting  of claims paid out. The reduction in premiums by going to a higher deductible plan off-sets the claims and administration fees which reduces the cost of health insurance to the employer. Over a 5 year period this plan has shown significant savings.