The management of employee health benefit plans is an overwhelming task for employers. Additional ambiguity and concern surfaced when The Patient Protection and Affordable Care Act was signed into law. It’s incredibly challenging to navigate increasing regulatory requirements, unstable cost structures and an unpredictable future. IntegraFlex’s actuarial services offer an in-depth look at insurance funding, risks, costs and planning needs. Our analysis delivers a comprehensive examination of current benefit policies, renewal options and future prospects. Employers are empowered to make cost saving decisions that will work proactively over the long term by utilizing actuarially sound cost projections and risk assessments. Our actuarial services cover a wide range of reporting and planning needs:
HRA Cost Modeling
It is difficult for employers to determine how much of the available funds in an HRA will be used by employees and their dependents. The IntegraFlex cost modeling and design service shows just how much an employer should expect to save.
COBRA Rate Certification
It is important for employers to have actuarially sound COBRA continuance rates calculated for their self funded and partially self funded plans, including HRAs. IntegraFlex will calculate COBRA rates and provide an actuarial certification of those rates to employers for each of their plans. These rates can also be used as a tool in the setting of employee contribution strategy.
Pay or Play Modeling
Many employers are deciding if they want to “play” by the rules and offer employees affordable group coverage or “pay” penalties. Integra-Flex’s pay or play analysis will show an employer the aggregate cost to their company and their employees under the options available once state run health exchanges are available and penalties start to be imposed in 2014.
IBNR Reserve Calculation
When an employer sponsors a self-funded plan or partially self funded plan, expenses are paid as they come in and are processed; as such, a percentage of claims are incurred that have not been paid for that employers are liable to cover. IntegraFlex calculates the IBNR reserve, also known as a terminal liability reserve, for self funded employers.
Carrier Renewal Review for Fully Insured Plans
Insurance carriers can sometimes use poor assumptions, make mistakes, or simply fail to notice something in a fully insured employer’s situation when calculating renewal costs. IntegraFlex can often provide employers with information to negotiate renewal costs down after performing a review of the renewal calculations done by the carrier.
IntegraFlex’s funding analysis is a powerful tool in the strategy and decision-making process for self funded employers or those considering self funded plans. The analysis involves a review of experience and trend, a projection of future claims cost, modeling of multiple stop-loss programs for comparison between programs and to stop-loss quotes received, as well as Monte Carlo simulation modeling of those programs.