What You Need to Know
- The new program offers health insurance plans to advisors at a fraction of the cost of plans on the open market.
- Plans are being offered at three deductible levels: $2,500, $5,000 and $10,000.
- Also being offered is a bundled plan of long- and short-term disability and term life.
The Financial Services Institute launched a new national health insurance program that it said Wednesday provides a new way for independent advisors to obtain Affordable Care Act-compliant major medical health insurance plans for themselves, their licensed staff and their families at a fraction of the cost of plans on the open market.
FSI had announced a health care plan for advisors and staff in 16 states, along with separate non-health benefits offerings from Prudential Insurance, early last year at its annual OneVoice conference in San Diego. But FSI is no longer offering such small-group plans, according to Chris Paulitz, FSI head of strategic initiatives.
The new FSI health insurance program provides coverage at up to 50% savings through national PPO plans available in all 50 states that allow covered members to go to just about any doctor and comply with all ACA requirements, according to FSI.
Plans are offered at three deductible levels: $2,500, $5,000 and $10,000. These are also the respective plans’ out-of-pocket maximums, FSI said. Two of the plans are health savings account (HSA)-eligible and premiums are usually tax-deductible, it noted.
FSI partner Vault Strategies started a captive insurance company for FSI members as part of the health program rollout, according to Paulitz. “FSI members join the captive and control 51% of it,” he said.
Although the plans being offered are ACA-compliant, “they are 100% proprietary to FSI, and cannot be found on the open market at these rates,” he noted, adding: “For most advisors, our rates will be dramatically lower and the actual healthcare they receive will be better than what they currently have.”
FSI members can choose from one of two options, he explained. “They either utilize the PHCS national PPO network, which is the largest physicians network in the country, or opt to work with AMPS, which pays doctors and hospitals using referenced based pricing, which drives fairness in pricing for our members.”
That allows advisors to see “any doctor they want, with nothing being out of network,” he said. “And because we are ACA-compliant, we adhere strictly to the ACA guidelines even though our prices are so much lower than typical open market plans.”