| Issue: # 45 |
March 9, 2010 |
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*****************Client Alert*****************
Business Express from the Commonwealth of Massachusetts
Over the past 2 weeks many of our clients have received letters or heard radio advertisements from Commonwealth Connector announcing a new resource for health insurance called Business Express.
The Connector was created when the Commonwealth of Massachusetts mandated that residents must have health insurance, or be subject to state income tax penalties. Originally, the Connector was merely a resource for individuals unable to secure insurance through a business and had difficulty finding coverage to comply with the state's new guideline.
This state agency has now decided it would like to offer a product line to businesses, targeting 5 or fewer employees. As brokers we are always examining the best ways to find quality products at the best prices. To that end, we are licensed with Business Express and sell all products in their portfolio without any additional charges to our clients.
As always, if you have any questions email Bill or Vanessa. We hope you find these newsletters helpful, please forward to anyone who may find this of interest. To learn more about Advantage Benefits click here.
Sincerely,
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| Massachusetts Connector Authority
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The Connector Authority is targeting small groups with 5 or fewer employees with Business Express. As brokers we are as frustrated as you when delivering double digit renewal increases and have reviewed their offerings. At this point, however, we do not see it as a viable option for the majority of our clients. Business Express advertises "plans from all the state's major insurers", but:
- Blue Cross is not available through Business Express.
- Tufts only offers their Select network of providers through Business Express. This is materially smaller then their standard network.
Most importantly, there are no inherent discounts in the rates through Business Express. Assuming you quote the same plan design, same census & effective date, the rates are the same direct with the carrier or through Business Express.
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| "Behind Business Express"
Who are They? Where are they? |
For years small businesses with 5 or less employees have been forced to work through an intermediary to purchase health insurance. The most popular ones in Massachusetts are the Small Business Service Bureau (SBSB), Northeast Business Trust (NBT), or your local Chamber of Commerce. These entities require annual membership dues and in some cases a monthly administrative / billing fee in order to obtain health insurance. In fact the bills come directly from these intermediaries, not the insurance carrier.
We have worked with all of these intermediaries and find their service levels and technical expertise lacking in all areas. Most of the carriers, however, with the exception of Blue Cross, require 5 eligible employees before you can purchase a product on a direct basis. As a result we have recommended to our groups with 5 or fewer employees to go direct to Blue Cross to ensure the utmost quality and avoid these intermediaries.
We mention this since the Commonwealth Connector Authority does not actually run Business Express. They have contracted with an intermediary, SBSB, to administer Business Express for them. When you call the toll free number you are actually calling Worcester Mass. and the office of Small Business Service Bureau, an insurance broker just like us, not the Connector Authority.
The bottom line is that Business Express is in actuality SBSB selling products for The Commonwealth Connector Authority. The savings advertised is merely the annual membership dues and monthly administration fees to join any of the above groups. |
| Questions on anything.....
Send me an e-mail |
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Got a question on anything, send me an e-mail?
- What is an HRA?
- What is an FSA?
- What is an HSA?
- What are all these AFLAC commercials about?
Ask me anything, I will answer you. One bit of advice that I tell everyone, and we have mentioned many times on this blog. Check out Walmart for prescriptions!!!! The list of drugs provided by Walmart ($4 for 30 days/ $10 for 90 day mail order), continues to grow daily.
I truly believe that we will eventually see health insurance from the HMO's that do not include prescription coverage and you may be able to purchase group prescription plans from the major pharmacies just like Medicare.
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