Pub. 11 2024 Issue 1

these projected costs do not materialize, yet there is downside protection if they do. Captive Insurance programs can also mitigate individual client risk. Emerging providers in many markets can also help lower healthcare access costs. These providers offer innovative solutions to avoid shifting towards even higher deductibles and increased cost-sharing. By partnering with such providers, dealerships can provide their employees with more affordable healthcare options without compromising the quality of care. Managing eligibility and contribution strategy is another critical opportunity in controlling healthcare costs. Implementing eligibility and contribution management strategies won’t lower per-employee costs but can reduce overall employer spending. By carefully evaluating eligibility requirements and contribution structures, dealerships can optimize their healthcare plans and ensure that they are not overpaying for coverage. It is essential to work with an innovative broker who possesses the knowledge, access and market clout to educate your dealership about these available options. Continued on page 14 CONTROLLING YOUR DEALERSHIPS’ HEALTHCARE COSTS With record-breaking general inflation rates, the specter of significant medical insurance cost increases has been looming over employers and individuals alike. Many dealerships are grappling with medical insurance cost increases that are dramatically higher than what they experienced during the years of COVIDdriven cost suppression. It is crucial for dealerships that are facing unaffordable increases in their medical insurance costs to explore various strategies to mitigate their financial burden. One common approach used by insurance providers is to project high expected trends in healthcare costs even though this inflation may not necessarily materialize. With large trend rates impacting renewal costs, dealerships should closely examine alternative funding options — especially those where maximum costs are capped. Under these programs, the dealership is not responsible for paying excessive amounts if Ask Alison By Alison McCallum, EPIC Insurance Brokers and Consultants 12

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