Business owners are truly miserable at this experience yet no firm is so special that they are going to avoid the spiraling costs of healthcare
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Encino, CA (PRWEB) March 16, 2009
Managing rising healthcare costs has become a primary challenge in today's waning economy where the majority of businesses are struggling and facing declining revenues, reduced profitability, workplace downsizing, and store closings. The annual cost of healthcare rises 15% a year, creating a continuing sense that we are paying for more and getting less. Over 65% of California businesses offer some type of employer-sponsored benefit but this number is dramatically dropping due to the increase in premiums and the declining economy. Corporate Strategies Inc., the San Fernando Valley's fastest growing employee benefit and life insurance agency, helps business owners keep their health insurance programs by turning the rising costs of healthcare into an asset.
Business owners typically purchase health insurance from brokers directly and yet very few brokers really understand the mechanics of how to manipulate plans to the benefit of their client. HMOs, which used to be the primary plan available for employees now are more costly than PPO plans. PPO plans continue to become a source of frustration because more and more doctors are opting out of managed care and are going to a concierge and all cash plans.
Martin Levy, CLU/RHU founder of Corporate Strategies Inc. offers a unique strategy to employers struggling to keep health insurance. "Business owners are truly miserable at this experience yet no firm is so special that they are going to avoid the spiraling costs of healthcare," Levy says. "For our clients we use our experience, unique reach into products, and benchmarking tools to help turn the tide against rising healthcare costs. Our unique/proprietary process helps an employer make very difficult decisions in a climate that has to balance the challenges of recruiting and retaining key people with the declining revenue stream."
Levy designed a proprietary tool called, The Employee Benefit Asset Creator, which helps employers transform the expense of healthcare into an asset by helping employees engage in the cost and delivery of the plans. The firm uses a benefit scorecard to help employers rate the opportunity to improve their delivery and effectiveness of their plans. Corporate Strategies Inc. helps employers understand the best strategies and plan designs to help them get the most mileage out of their healthcare.
To save on costs, employers may integrate employee contributions, reduce benefits, and/or eliminate benefits all together. Levy says that there are ways employers can soften the blow of giving health care costs to employees and this would be by offering a cafeteria plan (pre tax plan), HSA account, and discriminatory plans to favor highly compensated employees.
"Most companies deliver a 'one size fits all' approach," Levy says. "We try and turn the delivery and choice of plans to the employees thus, developing plans where employees have choices to fit their personal needs."
Levy recently worked with a local flooring company and not only mitigated their 30% rate increase, but also worked with the staff to educate them about the impact of healthcare costs on their overall company. "We saved their 401K match this year," Levy says.
In today's economy it is estimated that over 30% of the state is uninsured. While healthcare still ranks high on the priority list for most Americans, it has become one of the high-ticketed items that some people are doing without although the cost of getting sick is only outweighed by the cost of staying healthy.
"There seems to be no relief in site," Levy says. "We are all hoping and praying that federal legislation is going to change things. Until that time, we will work with our customers to help them deliver the best possible opportunities to their employees."
Founded in 1992 Corporate Strategies Inc., is an Insurance and Financial Services organization that provides risk protection, insurance, employee benefits and accumulation products to small and medium sized businesses. Corporate Strategies Inc. is the fastest growing employee benefit and life insurance agency in the San Fernando Valley and ranks in the top 20 of Anthem brokers in California. The firm currently services over 1000 businesses. Corporate Strategies Inc. 16255 Ventura Blvd., Suite 320, Encino, CA 91436 USA. Phone: (800) 914-3564; Fax: (818) 377-7263; Email: info (at) CorpStrat (dot) com; Internet; http://www.CorpStrat.com.
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