Debunking health plan renewal myths: You don’t have to wait to find better benefits

Jesse Kohl, President of InterLutions
March 2024

Health insurance can be a complex field to understand, leading to misconceptions, misinformation, and ultimately overspending on the wrong providers. Fortunately, credit unions have a CUSO partner to help them navigate the options, debunk the myths, and chart a new path for better results.

Let’s take a look at three common myths in the health insurance industry, and what we can do differently to help our employees and our bottom lines.

Myth #1: I’m locked into my health plan until my renewal date.

If your credit union is utilizing what’s called a fully funded health plan, you are not bound by the confines of your health insurance renewal date, regardless of the effective date. This means your health plan probably operates on a month-to-month contract, affording you the flexibility to explore other options without incurring fees or penalties upon cancellation.

What’s more, if your employees utilized deductibles under your current plan, a "deductible credit report" can help you seamlessly transfer to a new plan, ensuring that nothing is lost in your employees' plan utilization.

Myth #2: Level funded plans are higher risk than fully funded plans.

Did you know that the monthly premium payments and risk associated with a level funded health plan can be structured similar to a fully funded plan? Level funded insurance plans combine the potential cost savings and flexibility of a self insured plan with the financial stability and predictability of a fully funded plan.

Depending how you structure a level funded plan, you could even get a refund of unused claim dollars at the end of your plan year.

Myth #3: My carrier options are limited to the “BUCAs.”

The insurance industry acronym for the four largest carriers is BUCA, meaning: Blue Cross, United Health, Cigna, and Aetna. Most brokers place their clients with one of these four insurance carriers. While the BUCAs are highly rated national networks, there are several other reputable, highly rated, and national providers available to credit unions. In fact, smaller employers can often-times find lower cost premiums with better plan designs by exploring carriers outside of the BUCA network.

The Bottom Line

The reality is – there’s no need to wait until your renewal date approaches. InterLutions invites you to take a proactive approach in discovering how I-Care can enhance your employee benefit plan offerings and potentially reduce premium costs NOW.

With no risks involved, it's time to ask yourself:

• Did I just renew my employee health plan out of necessity because I couldn’t find a better alternative?
• Am I satisfied with my current broker's offerings, or am I seeking alternatives that go beyond the standard, fully insured options with recurring rate increases?

Don't settle for the standard – discover a better alternative with no fees, no penalties, and the potential for enhanced benefits. Contact us today to discover how we can elevate your benefits plan and unlock potential improvements and cost reductions.

Contact InterLutions to learn more about how we can help your credit union create a better benefits package for less.