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AAOA HEALTHCARE
Why Buy AAOA HEALTHCARE
Most people are unaware that the health insurance premium they pay includes a variety of other expenses, not just claims.
Plan design services | |||
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Promotion |
Distribution |
Commissions |
Billing |
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Administration |
Eligibility |
Premium Taxes |
Operations |
The traditional approach includes these administrative costs as a percentage of the premium. As premiums increase, each of these administrative costs increase by the same percentage. Over time, these percentage increases add inflationary pressure on premiums and are referred to as the “Hidden Costs of Healthcare.”
The Solution
A fixed administration approach that changes how premiums are formulated by separating administration and claim costs. Administration costs are locked-in, or “fixed,” at the time a group initially enrolls, and do not increase with future premiums. When premium increases do occur, the increases are applied to the claim cost of the coverage and not the administrative costs.
Premium Comparison
Percentage Administration Versus Fixed Administration
A ten year rate study of $100 in premium based upon historical trend and the traditional percentage administration, compared to Fixed (PEPM) Administration.
AAOA Healthcare introduced “A Better Way to Buy Healthcare”. We bring the advantages of large group plans to smaller employers with a fixed cost approach to healthcare that includes:
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Fixed Administration Costs |
Multiple Plan Options |
Integrated Benefits Design |
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Fixed Commissions |
Tax Saving Integrations |
Full Compensation Disclosure |
