Benefit Partnership Plans
While the national health reform debate continues, one must go back and revisit the original concept of insurance. Insurance is to provide protection for large losses that no one can sustain, through the process of taking a small loss in the form of a premium to cover this contingency.
Over the years, health insurance has evolved away from this concept and has become a first-dollar benefit entitlement program to pay for all expenses. The result has been a huge run up in the cost of health insurance, which has created this national dilemma. If Americans do not address this cost issue, this will only exacerbate in the future.
We have a new vision for the future. We would like to return to the original concept of insurance coverage for large expenses and not all small claims. Interesting enough, people seem to be willing to accept this for auto and homeowners insurance, but not for medical insurance.
Essentially, the benefit partnership we can provide couples an employer provided catastrophic major medical package with an employee selected and purchased panel of fully insured indemnity type benefits for other expenses. This package will not only include coverage for out-of-pocket medical costs but also a full range of other protection packages, such as life insurance, disability, dental, vision and all other traditional type services. Section 125 pre-tax treatment for most of these employee purchases offers significant savings.
The essential component to this vision is the concept of a benefit partnership package. This means that it is not solely the responsibility of the employer to provide and pay for health insurance. While most employee’s medical spending is actually somewhat small, the employer provides large claim protection coverage.
(see theamericanworker.com/bp for more details)