KCIT Benefit Plan
Presented By: Scott Snowden
Snowden & Associates, Inc.
KCIT
Endorsed by: AGC, Builders Exchange, KAHC, KCSA
• Mass purchasing power
• Discounted rates for member firms
• Local personalize service
The Kentucky Construction Industry Trust was established over 30 years ago
to provide comprehensive employee benefits to members of participating
trade associations. Due to the mass purchasing power of this fully insured
insured trust, even small businesses are able to take advantage of a high
level of quality benefits at costs normally available only to large employers.
Currently, there are over 800 employers participating in the trust with
approximately 10,000 construction employees and their families covered for
benefits
Products Available
• Health Insurance (Carrier Anthem)
– Dual choice plans
– PPO and Health Savings Account Plans
– Excellent national network of physicians and
hospitals
– Wellness programs available
• Group Term Life
An inexpensive way for an employer to provide basic life
coverage during and employees working years.
Volumes of insurance can be scheduled based on
percentage of compensation, job title or flat amount for
all employees
Products Available (continued)
• Group Long Term Disability
– Benefits up to a monthly maximum of $8,000
– “Own Occupation” definition available during the
first two years of disability
– Benefits available for partial disability
• Group Short Term Disability
– Benefits up to a weekly maximum of $800
– Benefits begin on the eighth day for an illness;
immediately for an accident
– Benefits are payable for up to 13, 26 or 52 weeks
– Maternity coverage
Products Available (continued)
•
Dental
– Plans available as employer paid or voluntary (payroll
deducted)
– Orthodontia offered as a rider
– Strong provider networks
•
Prevailing Wage Program
Prevailing wage plans are available with complete
administration from a third party including banking of hours.
Qualified benefit plans include health, life, dental, disability and
health care waiver of premium.
•
Administrative Compliance Services
Plan administration and billing services are provided by the
trust administrator. They also offer COBRA and cafeteria plan
administration.
Positioning
Under health care reform, as of 01/01/14 the small group
market (outside of association plans) will move to a modified
community rating model. This means that premiums would no
longer be partially based on your group’s claims, but rather on
a blended risk associated with the small group pool. Basically,
this means that you have no opportunity for discounting if you
are a healthy to average risk group. Under community rating,
the healthy groups subsidize the less healthy, thus increasing
pricing for a large percentage of groups.
Also, the reform guidelines for non-association plans will
change the rating spread (top to bottom) from a 1-5 ratio
down to a 1-3 ratio. This should benefit older age brackets,
but the younger age brackets could see dramatic premium
increases.
KCIT Strategies
After a lengthy analysis of the reform law, the KCIT has
received guidance from legal professionals on how to fit
in to the Health and Human Services Department’s
definition of a bona fide association and be viewed as a
single large group plan as a Multiple Employer Welfare
Arrangement (MEWA) . This enables us to continue to
base rates on your group’s risk and continue with the
current ratios. This should make the KCIT program an
excellent fit for any average to better than average risk
group. It will be one of the only avenues for small
groups to obtain any discounting for favorable risk.
KCIT Strategies (continued)
In order to comply, we will have to require the following of every participating group:
•
•
•
•
Compliance with large group laws even if you have fewer than 20 employees (COBRA,
Medicare will be secondary payer, Mental Health Parity, Autism, etc). The KCIT has a
third party administrator that will offer the related administrative services for you to
stay in compliance. Our office will assist you in understanding these laws.
Uniform renewal which is in April of each year, starting in 2013. Compliance with the
HHS provisions will require that we renew all participating KCIT groups renew together.
This will result in a short year for some. For example, if you renewed or joined the
program in January, you will renew again in April.
Like industries will be required. Participating firms will need to be 51% commercial
construction related by the 2014 renewal and have an approved construction related
SIC code.
Minimum group size will be two employees.
It is our belief that the savings opportunities for KCIT participants will far outweigh the
compliance burdens. The exception to this could be high risk groups. We will be able to
shop the various insurance carriers in the marketplace for you and find the best fit,
either in or out of the KCIT.
KCIT Wellness Program
Finally, there is a wellness program that is simple to
use. The KY Construction Industry Trust has committed
funding to encourage participating employees and their
spouse’s to take the first steps in identifying medical
conditions and how to manage their risks for positive
long-term health.
Clearly, the healthier you are, the better long-term risk
will be associated with our group. This risk is reflected
in renewal rates each year. Not only is there the
potential for improved rating factors, and improved
lifestyles but a healthier workforce would be a more
productive workforce.
KCIT Wellness Program
4) KCIT credits
$125/yr to
employer's bill for
each person
completing
assessment or
exam
1) Employer
communicates
program to
employees
3) Anthem tracks
the assessment or
exam code and
notifies KCIT
2)
Employee/spouse
does online health
assessment OR
Employee/spouse
has preventive
physical exam
KCIT Wellness Program
The $125 credit is applied to the bill on a quarterly basis for any
covered employee and/or spouse who completes the online health
assessment or has a preventive physical exam. These credits help
the employer to subsidize costs and assist them in continuing with
the current level of benefits.
You may access the free online assessment by going to
www.anthem.com and registering (click on register and select a
password). You would then select the health assessment which
would be completed in a secure, confidential format. If getting the
physical exam, just make sure that the doctor codes it as preventive
and not just monitoring of a condition (for those who go in annually
to maintain a medication, for example). If the doctor sends you to a
separate outpatient facility for part of the exam (blood draw, x-ray,
etc.) the deductible under our plan would apply, so you would incur
costs.
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Questions?
Thank you for your time….
Contact Information
Scott Snowden
Snowden & Associates, Inc.
(502) 339-7980
scott@snowdenbenefits.com