Covered California for Small Business’ Unique Advantages
Covered California for Small Business’ Unique AdvantagesOctober 25, 2017
Balancing employers’ cost concerns with benefits options can be challenging and time-consuming. With multiple carriers, two statewide full-network PPO plans, valuable savings, and flexibility—Covered California for Small Business (CCSB) is the perfect solution.
As an agent, you benefit by saving time. No need to coordinate processes with multiple carriers—quoting, application and invoicing are consolidated and handled through CCSB. And just as important, no need to worry about carrier audits or re-certification due to participation among carriers so long as the group meets CCSB’s overall participation requirement.
Despite the turmoil surrounding the repeal of the ACA, CCSB will continue operating business as usual….only better. You can confidently sell CCSB as the trusted exchange with top-tier carriers and products. CCSB is self-sustainable and operates without any federal or state funding, deriving their funding instead from carrier fees. They also ensure product and rate stability with 3-year carrier contracts and 12 month guaranteed employer contracts.
- Expanded Affordable Coverage Statewide
- Grow Your Business in a Growth Market
- Sell Your Clients Something Better
- Valuable Savings
- Designed for The Small Group Market
- Competitive Commissions
Why Covered California for Small Business?
Expanded Affordable Coverage Statewide
On January 1, 2017, Blue Shield started offering their full-network PPO plans, making them the only exchange in California to offer full-network PPO options from two carriers.
More Coverage Choices
- The only exchange with two full-network statewide PPO options:
– Blue Shield of California.
– Health Net.
- Out-of-state coverage through Blue Shield’s Blue Card.
- New Blue Shield Trio ACO HMO.
- Kaiser Permanente expanded coverage in Santa Cruz County.
Great fit for employers in San Jose and the peninsula.
Covered California for Small Business Carriers
Grow Your Business in a Growth Market
Exchange products in California are not only here to stay, but according to consulting firm PricewaterhouseCooper, more than 500,000 new small group members will join an exchange over the next 3 years*. Many of these new members will come from groups buying first time coverage, as new groups are attracted to the flexibility of exchange products.
Sell Your Clients Something Better
Competition for human capital is intense. Employers need to attract, retain and motivate skilled employees with rich flexible benefits that offer cost savings—a healthcare portfolio that caters to employees’ needs and the employer’s bottom line.
With CCSB it’s easy. Employers determine the amount they’re willing to pay for health coverage, and employees can then control how they spend it by selecting the plan options they prefer. A cost-effective solution that improves employee satisfaction and retention, and provides a competitive advantage.
With CCSB, you can deliver unique cost savings to employers, such as the small business tax credit, employee-only coverage, no administration or late fees, and no pediatric dental requirement.
- Tax Credits
Small employers are eligible for tax credit savings of up to 50% on premiums, only available through CCSB. For a full year of tax credits, start coverage in January!
- Employee-Only Coverage
Employers can dedicate their full budget to covering employees, and still allow employees’ dependents to qualify for subsidies if they purchase individual coverage from Covered California.
- No Administration or Late Fees
No hidden fees. Every budget dollar is applied towards premiums.
- Kaiser Permanente Plans are Less Expensive
CCSB is the only carrier that doesn’t require pediatric dental in all plans. Kaiser plans are less expensive without the pediatric dental requirement vs buying coverage directly from the carrier with embedded pediatric dental.
Designed for The Small Group Market
CCSB designed its plans and guidelines to maximize flexibility for small businesses of all types. Business owners want employee benefits to be a retention tool rather than a business obligation. For example, sometimes an employer needs more time to pay their premium during periods of tight cash flow. CCSB doesn’t charge late fees, unlike carriers or other exchanges that penalize employers with up to thousands of dollars in late fees.
As small businesses grow, their employee mix changes. No problem if your client is with CCSB—they don’t recertify groups each year, and employees can choose the plan type and carrier they want without worrying about participation with any one carrier.
Small Business Benefits Include:
- No late fee or admin fees.
- No annual recertification.
- Only one employee must reside in CA (so long as the group is based in CA).
- No carrier participation rule; just 70% overall participation after valid waivers.
- Flexible waiting periods.
- No budget surprises – defined employer contribution option.
- Employee choice of carrier and plan within 2 metal-levels.
CCSB pays agents commissions consistent with carrier direct and other exchanges. Starting January 1, 2018, commissions for new CCSB applications will move to the 5% flat industry standard for groups with 1-100 enrolled employees. CCSB values the role of certified agents and will not change the vested commission rate for groups in-force December 2017 or earlier. Early issues with timely commission payments have been resolved.
A Trusted CCSB Partner
Claremont has been a trusted CCSB partner to agents since the exchange’s 2014 launch, and we are the top-producing general agency in our territory. Our close relationship with and in-depth knowledge of CCSB, enables us to provide you and your clients with key insights and exclusive resources.
Exceptional Service and Support
With over 125 years of combined benefits experience, our CCSB experts will provide you with guidance and support every step of the way—all at no cost. From agent certification and quoting, to assessing new group eligibility and resolving post-enrollment issues, you can count on us to simplify the process, so you can focus on achieving your goals.
Valuable Market Insights and Resources
Solutions to help you understand and sell CCSB:
- CCSB Advantages for Agents and Employers
Why you should sell CCSB to your clients. Plus, a handout for you that illustrates the unique value CCSB offers your clients.
- Health Care Tax Credit Solution
- Quarterly Top 20 Lowest Cost Plans Report: Broad and Narrow Networks
- Agent Resources
Contact Claremont today to get started.
*Source: PwC 2016-2022 Market Analysis and Planning, Small Business. Published April 2016.