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<blockquote data-quote="Ricochet1a" data-source="post: 981373" data-attributes="member: 22880"><p>Do some more research into this. I don't believe that purchasing an individual plan through CIGNA (with the same level of benefits) is cheaper than the premiums you pay each year through Express for the group plan. </p><p></p><p>Most individual plans run in the ball park of $4,000 to $6,500 a year (for coverage comparable to the Express group plan). To qualify for these plans, an individual must (usually) submit to a complete physical with EKG and blood work. If they have no pre-existing conditions, they are covered after a certain delay (90 days is the usual delay). </p><p></p><p>I think an individual pays in the ball park of $800/yr in premiums for the CIGNA plan. If you are on CIGNA and just have individual coverage, take the figure that is shown deducted in your pay stub and multiply that by 48, the annual premium is broken up into 48 equal payments - months in which there are 5 Fridays don't have a premium charged during the 5th week.</p><p></p><p>This means that Express is picking up about ($3,000 - $5,000) - speaking in actuarial terms. Since Express covers ALL insurance billing (CIGNA and Anthem are administrators, they merely do the paperwork and FedEx pays the actual bills, FedEx pays the insurance companies a fee to provide the "expert" administration of the plan) if you don't get sick at all in a year, FedEx "banks" the premium from you.</p><p></p><p>On the otherhand, if you end up in the hospital and accrue $50,000 in charges which are covered under insurance, FedEx pays those. Like all self-insured companies, FedEx is taking the risk.</p><p></p><p>However, since the majority of FedEx employees are physically fit and tend to be younger than average, FedEx wins here. </p><p></p><p>The other option for group insurance for companies is "capitation". The employer pays a flat rate based upon number of employees they have covered (the $4,000 - $6,500 rate, depending on coverage), and the insurance administrator takes the risk. If there is an outbreak of health, the insurance administrator "wins", if there is an outbreak of ill health, the insurance takes a loss.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 981373, member: 22880"] Do some more research into this. I don't believe that purchasing an individual plan through CIGNA (with the same level of benefits) is cheaper than the premiums you pay each year through Express for the group plan. Most individual plans run in the ball park of $4,000 to $6,500 a year (for coverage comparable to the Express group plan). To qualify for these plans, an individual must (usually) submit to a complete physical with EKG and blood work. If they have no pre-existing conditions, they are covered after a certain delay (90 days is the usual delay). I think an individual pays in the ball park of $800/yr in premiums for the CIGNA plan. If you are on CIGNA and just have individual coverage, take the figure that is shown deducted in your pay stub and multiply that by 48, the annual premium is broken up into 48 equal payments - months in which there are 5 Fridays don't have a premium charged during the 5th week. This means that Express is picking up about ($3,000 - $5,000) - speaking in actuarial terms. Since Express covers ALL insurance billing (CIGNA and Anthem are administrators, they merely do the paperwork and FedEx pays the actual bills, FedEx pays the insurance companies a fee to provide the "expert" administration of the plan) if you don't get sick at all in a year, FedEx "banks" the premium from you. On the otherhand, if you end up in the hospital and accrue $50,000 in charges which are covered under insurance, FedEx pays those. Like all self-insured companies, FedEx is taking the risk. However, since the majority of FedEx employees are physically fit and tend to be younger than average, FedEx wins here. The other option for group insurance for companies is "capitation". The employer pays a flat rate based upon number of employees they have covered (the $4,000 - $6,500 rate, depending on coverage), and the insurance administrator takes the risk. If there is an outbreak of health, the insurance administrator "wins", if there is an outbreak of ill health, the insurance takes a loss. [/QUOTE]
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