Employee Insurance Benefits

Rising healthcare costs and ever-increasing employee demands pose a dual challenge for business.  Benefits play a vital role in your employee recruitment and retention. At FMIG, we work to preserve benefits quality while keeping cost-containment clearly in focus.

The success of any benefits plan is measured by its administration. Our skilled team provides fundamental insurance company administrative, procedural and protocol training.  We also coordinate enrollment meetings and provide on-going administrative support throughout the plan year. All inquiries related to benefits, plan provisions, member eligibility and claims are promptly and efficiently handled.

 Our wide range of employee benefit plan options includes:

  • Group Life/Health/Disability/Dental/Vision/RX
  • Group Life
  • Business Life
  • Business Disability
  • Short Term Disability
  • Long Term Disability Health Benefits
  • Health/ Dental/Vision/RX
  • Flexible Benefit Plans
  • Medical Reimbursement Plans
  • Dental and vision
  • Voluntary Payroll Deduction Plans
  • Dependent Care Accounts
  • Self-Funded Programs
  • Third Party/Administration Placement

Self-Funding Alternatives

In an era of rising costs, employers are examining ways to economize and improve cash flow without continually sacrificing benefits and cost shifting premium increases to the employees. Budget considerations, health conditions, aging employees, and plan design each have an effect on the costs of an employer's health plan. Employers invest millions of dollars each year in insured employee benefit plans. After capital costs and raw labor, benefit costs are often the largest single employer expense. The drawbacks to a fully insured approach to benefit planning are threefold:

 A self-funded plan is one in which the employer assumes risk for providing benefits to its employees. Instead of paying all fixed premiums to an insurance carrier, self-funded employers pay employee claims out of their own pockets as the claims are incurred.

FMIG offers the following self-funded alternatives:

Fully self-funded health plan: The employer assumes all the risk for providing health care benefits to their employees.

Partially self-funded health plan: The employer assumes a portion of the risk for providing health care benefits to their employees.

Minimum premium plans: The employer pays a constant monthly premium and if the claims are favorable through the year they get a refund of premium.

Benefits of Self-Funding:

  • Fully-Insured plan designs remain generally inflexible
  • Effective claims management programs are not always available
  • There are few wellness programs which help you change the habits of your employees and help lower claim costs
  • Immediate cash flow due to lower monthly premiums.
  • Employer controls the money that would be otherwise held for claims reserves by the insurance company.
  • A much lower premium tax. Insurance companies have to pay tax on premium collected. Insurance companies just pass this tax on to the employer in the form of higher premiums.
  • A much lower premium to cover catastrophic expenses.
  • A variety of contract options to limit employer risk.
  • Employers design their own benefits to limit wasteful claim spending.
  • Regulated by Federal Laws (ERISA), not State Laws. 
  • There are many claims management tools which lower claim costs and create better employee habits to keep them healthier.
  • Better reports to identify the high costs of benefits plans.

FMIG seamlessly coordinates the following insurance providers and components to support Self-Funded Plans:

  • Over 24 A or A rated Reinsurance Carriers
  • Direct negotiation with reinsurance carriers
  • Utilization/Large Case Review
  • 4 Third Party Administrators (TPAs), 2 with exclusive rights for marketing Indiana
  • Negotiation of additional discounts with our national provider networks
  • ERISA attorney on retainer to provide direct client assistance
  • Multiple wellness vendors and disease management companies
  • Analytical software tools to help determine claim savings
  • Multiple contacts with national drug vendors

For more information on employee benefits, please call First Merchants Insurance Group at 765.213.3400.