The Guaranteed Benefit Plan HB 2640SB 6603

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The Guaranteed Benefit PlanHB 2640/SB 6603
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The Guaranteed Benefit Plan

• Peace of mind
• Guaranteed level of financial security

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The Guaranteed Benefit Plan

• Offers
• Guaranteed catastrophic
• coverage, after 10,000
• Key preventive care
• Affordable routine health care
• Private insurers provide
• coverage

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The Guaranteed Benefit Plan

• Provides for
• Consumer choice
• Personal shared responsibility
• Robust debate
• Voters decide

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The Guaranteed Benefit Plan
Scenario 1 Small employer family coverage
Scenario 2 Large employer single person
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The Guaranteed Benefit Plan
Scenario 1 This scenario is for a family of four,
including a working 45-year old woman with an
annual salary of 55,000, her spouse and two
dependent children, whose coverage is provided
through a small-group employer-sponsored plan
(with assumed 80/20 cost share for employee, and
50/50 cost share for dependents). Family
Current Guaranteed Benefit Plan Medical
Premium 836 836 Guaranteed
Benefit -- 273 Net Premium 836 563 Emplo
yer Payroll Assessment -- 75 Employer
Contribution 553 422 Employee
Premium 283 216 Employee Payroll
Assessment -- 25 Total Employee
Cost 283 241 Combined Ee/Er Savings
(Cost) -- 173 (Source Milliman)
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The Guaranteed Benefit Plan
Scenario 2 This scenario is for a single, 55-year
old man with an annual salary of 50,000, covered
by a large-group employer-sponsored plan (with
assumed 90/10 cost share) Current Guaran
teed Benefit Plan Medical
Premium 782 782 Guaranteed
Benefit -- 261 Net Premium 782 521 Emplo
yer Payroll Assessment -- 129 Employer
Contribution 632 525 Employee
Premium 151 125 Employee Payroll
Assessment -- 27 Total Employee
Cost 151 152 Combined Ee/Er Savings
(Cost) -- 106 (Source Milliman)
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The Guaranteed Benefit Plan
Scenario 1 Small employer Estimated savings 173
per month per employee
Scenario 2 Large employer Estimated savings 106
per month per employee
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The Guaranteed Benefit Plan

• Summary
• Guaranteed coverage for
• everyone
• Consumer choice
• Personal shared responsibility
• Changing insurance company
• behavior

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The Guaranteed Benefit Plan

• Works well with other reforms
• Connector/exchange models
• Quality of care
• Cost containment

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The Guaranteed Benefit Plan

• Peace of mind
• Guaranteed level of financial security