By Paul Breslau, Breslau Insurance & Benefits Inc.
If you own or run a business, implementing two immediate insurance and benefits concepts will add significantly to the bottom line. These concepts will also improve employee morale and operations. The first is in the 401k retirement plan arena and the second is to provide Health Care “first” by using the EverydayCare plan managed by Redirect Health.
401k Retirement Plan
There are two main components of a 401k Retirement Plan. The first is the Recordkeeper who holds the assets (money), offers the investment options, provides ongoing service such as websites and education. The second is the Plan Administrator which can be bundled by the Recordkeeper. However, a better option may be to use a Third Party Administrator due to their expertise and specialized knowledge.
On a 401k Plan for a business with 190 employees we were just able to reduce plan expenses over $12,000 per year to be shared by the business and participating employees. Simultaneously we provided better service and improved compliance for Fiduciary responsibility. Some Recordkeepers are now requiring employers to sign a Fiduciary Responsibility Statement. Other Recordkeepers provide an ERISA 3(21) co-fiduciary service at no cost.
There are significant differences in the service, expertise, and costs of Recordkeepers and Third Party Administrators. Some are better at plan design and tax savings concepts. Benchmarking, bonding, conflicts of interest, discrimination, safe-harbor, plan audits, etc. are major concerns. It is very tempting to roll forward with current providers and not make changes or doublecheck. We recommend a complete review of your 401k plan.
Health Care First
Many agree the current health insurance financing system is broken for businesses. Family medical premiums often total $12,000+ per year with deductibles now $2,500 or higher. Copays and coinsurance can raise total costs to $15,000 or more. This is before any health care is provided.
Redirect Health turns this system on its head by providing unlimited primary care first at a monthly premium of $105 per person. This is paired with other lower cost health insurance with the overall result of significant bottom line savings. When an employee walks into the Redirect Health office or any doctor’s office approved in advance the “The Cost of The Visit Will be $0.” There are no credit cards, no paperwork to fill out, and at a Redirect Health office you never wait more than 15 minutes for a visit.
Redirect Health is transforming the healthcare industry. Dissatisfied with the traditional health insurance model the co-founders Dr. Janice Johnston, Dr. David Berg, and former Phoenix Mayor Paul Johnson decided to do something about it. Insurance cost is out of control and most people can’t afford to use their insurance for anything short of a catastrophe. Redirect Health has changed that; they put the healthcare first. As Director of Operations Mike Bechtol put it, “We make sure people always get the right care at the right place for the right cost, and we’re super good at it!”
Again, the cost for the routine everyday care that people use the most, including primary care and chiropractic, is $0. Cutting out the waste and administration rampant in healthcare makes healthcare affordable. Redirect Health is taking healthcare from a burden, to an affordable and smart advantage for business owners. Redirect Health also manages specialty care, hospitalization, and other expensed treatments to their most efficient and affordable option. For self-funded employers, the bottom line boost is even greater.
In Conclusion
Please check with your advisor or agent to see if they can help you with these ideas. However, not all agents and advisors are active with Redirect Health or other preferred providers. I am now referring to expert retirement advisors and health insurance agents. Please contact me if you would like to be evaluated and matched with one.
Paul Breslau, Registered Health Underwriter (RHU), Registered Employee Benefit Consultant (REBC), Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Chartered Advisor for Senior Living (CASL), is President of Breslau Insurance & Benefits Inc. Contact: 602-692-6832; www.HRaz.com; Paul@HRaz.com.