Health insurance wrap plans have the potential to reduce premiums dramatically. Districts purchase a high-deductible health plan and fund the deductible and co-insurance expenses with a Health Reimbursement Arrangement (HRA). Based upon the type of plan selected, deductible and co-insurance expenses are estimated to range from 25 percent to 75 percent of the total exposure. With this plan design, districts assume the risk of the deductible and co-insurance.

Aggregate insurance option

School districts can now buy insurance to protect themselves from any wrap plan expenses above the district’s current premium.

• The HRA Wrap Plan with Aggregate Insurance could save your district appreciable sums, while still providing comparable benefits to your employees.
• The chart below provides an example of how a district could save.

The estimated example is based on a census of 10 single, 12 two-person and 28 family contracts. The estimated cost of the Community Blue plan has been enhanced to closely align with major plans currently offered. Additional savings are possible by excluding the optional coverages.

Aggregate insurance and an HDHP
Savings Example	Annual Cost
Current Health Plan	$724,000
BCBSM Community Blue HDHP	$382,752
Deductible Expore: $225,000
Co-insurance Exposure: $225,000
Total Exposure: $450,000
Estimated Claim Usage (35%)	$157,500
Options: Massage therapy, extra chiro, etc.	$31,500
HRA Administrative Fee	$20,000
Aggregate Insurance	$7,200
Wrap Plan Estimated Cost	$598,952
Estimated Savings	$125,048
Maximum Cost with Aggregate Insurance	$724,800

If you are ready to explore a new way of reducing employment-related expenses without taking financial or health risks, contact your SET SEG Account Executive today! 1-800-292-5421