It’s because you are sharing changes in risk with the insurance company through annual rate adjustments. If you have a traditional, experience-based benefits plan, you have no way of predicting what the effect will be on your rates next year.<\/p>\n\n\n\n
As a business owner, you know that life happens. (i.e. staff turnover, sick days, health challenges, illness, accidents, dental work, prescriptions, glasses, etc.) Here is a summary of the main factors that can affect your rates from year-to-year. For example: <\/p>\n\n\n\n
An effective method of stabilizing rates is to transfer risk to a pool.<\/p>\n\n\n\n
Further, pooling is where there is a widespread risk among many member companies, with annual rate adjustments based on averages of the entire pool.<\/p>\n\n\n\n
Most pooled plans include part of your claims experience, bundling your business with others that had similar claims from the previous year, determining your rate increase for the next year. Typically, you will be moved between 3 – 6 pools based on versions of 3 main categories<\/p>\n\n\n\n
In a word, we believe this is not a true pooled approach, as it can create unexpected volatility. <\/p>\n\n\n\n
What makes Clear Benefits pooled programs different is that we utilize a “true-insurance approach” with 1 Pool and 1 Renewal for groups of 3 – 50+.<\/p>\n\n\n\n
In the end, each member company receives the same annual rate adjustment, making us one of the most stable benefits programs, with an 8 year combined average annual rate adjustment for Extended Health & Dental is 5.88%.<\/p>\n\n\n\n