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American Administration Services Company


Please allow us to prepare a complimentary comprehensive Cost Recovery Analysis for your CEO or CFO

Many large employers control costs by budgeting contributions via FlexCash or flex-dollar (.pdf file) credit plans. Our flexible defined contribution plan design enables you to lock into your current benefits budget (or establish an alternative budget) as large employers have done for years (IBM & Delta). We protect employers from escalating costs by locking into a defined contribution commitment that will not change as rate creep hits your plans. Your Flexible Benefit Credit Formula is custom designed and can be flat, tiered to family status, class, years of service and more. This is absolutely the safest, most proven "DC Style" benefit design using single or multiple health options (PPO, HMO, Indemnity, Budget or Opt-Out Cash, etc.), multiple insurance companies and provider networks for maximum flexibility & control. We mesh benefit flex-dollar credits with pre & post-tax benefit elections, vacation buy/sell, etc. into one smooth enrollment & administration process using a single enrollment form (.pdf file) for a 401k style "Defined Contribution Plan".

   

Flexdollars - PLURAL NOUN: Money provided by an employer to be used by an employee to obtain various benefits, such as health insurance and life insurance. Also called FlexCash.   from The American Heritage® Dictionary of the English Language: Fourth Edition.2000.

 

We deliver benefits "outsourcing solutions" designed to meet your specific objectives

"Outsourcing" recordkeeping, administration and data maintenance responsibilities to AASC improves communication and total service while reducing your overall costs and time commitments.

Our mission statement is unequivocal: Lower your expense and simplify your life!

We offer multiple health-plan options & flexibility. Our DC Plan concept allows you to control & budget exact contribution dollars, similar to a 401(k). You provide a set amount of pre-tax cash for the employee to use in purchasing benefits (these contributions are excluded from FICA/FUTA and reduce your payroll tax burden!)

We establish core and optional benefit plans including but not limited to: medical, dental, vision, long & short term disability, employee & dependent life, AD&D, LTC, legal, vacation buy/sell, medical spending, dependent care and 401(k) elections.

We provide single-point premium billing administration to simplify the collection, reconciliation and disbursement of group and voluntary premiums. We generate a single clearing-house style bill for multiple products and carriers to reduce the burden on sponsoring organizations (employer, union or association).

Can we adopt this DC Plan design concept now, even though it is Mid-Year?

Yes! è Changing Health-insurance carrier(s) is NOT Required! We can redesign the plans & establish a budget without disrupting your current contracts. We deliver communications and employee education enabling you to immediately lock-into a fixed benefits budget to gain control over plan costs.

Bottom line: No insurer change required and you do not have to wait (on specific dates, renewal or other!)

If desired, can we change insurers Mid-Year?

Yes! è Health-plan providers have a way of surprising employers. Rate increases, last-minute provider network changes and administrative difficulties (like not paying claims promptly) can expose sponsors to disruptions like ERISA lawsuits and DOL fines and employee discontent. Automatically renewing contracts often run a year but allow early termination for breach, etc. Most include a 45-day out clause so you can obtain new coverage on 45 days’ notice, enabling you to terminate your health plan contract early.

Even if you are locked-into a contract, you can immediately adopt our full-flex plan with a positive effect!

Our flexible contribution formulas allow you to allocate flex-dollar credits in many combinations including:

  • Credits to participants in a group based on any or all of the following: a fixed credit to decline coverage, employee only vs. family or employee + dependent credits tiered to specific benefit elections, percentage of salary, years of service and credits to employees related to a health factor i.e., a smoker surcharge.
  • Credits based on employee code(s) like: location, division, status, occupation, union or non-union, etc.
  • Credits based upon specific benefit elections. You control which participants are eligible for a benefit and for the credits associated with each benefit.
  • We can also enter an "additional" credit amount into the participant's record to adjust that person's credits for time buy-back minimums or any other requirements.
  • Our system assigns credits while processing eligibility, calculates the credits for each participant at each level then adds them together to allocate the total credits for each participant. We will suggest the best method for you after we complete your needs analysis and run the financial models to determine your most efficient plan design.

    COST & PAIN. This scenario is becoming too familiar: Top management grows concerned about rising health-care costs & orders an overhaul of it’s health-care program, including significant increases in monthly premiums, co-pays, and out-of-pocket costs, and limits on coverage. Then, a pattern develops: Top recruits no longer accept the company’s offers. Worse yet, key employees start to leave, citing their increased health-care cost burden as a reason.

    The Bottom Line: Too much health-care cost shifting can create recruitment and retention problems, say recruiters. An Executive recruiter recently had a CEO deal go sour over health care because of contributions to healthcare. This scenario is familiar: Top management becomes concerned about rising health-care costs & orders an overhaul, including significant increases in premiums, co-pays, and out-of-pocket costs & limits on coverage. Then, a pattern develops: Top recruits no longer accept the company’s offers.  Worse, key employees start to leave, citing increased health-care cost burden. Health-care expenses are hot topic for recruits and current employees. Before accepting any offer, recruits, particularly mid-level to senior management, are now asking for details on monthly health plan premiums, out-of-pocket costs, and coverage. Employers should not shift costs to an extent that it becomes a competitive disadvantage for recruiting and retention. Workers want health-care coverage, and appear to be willing to trade salary for coverage.  A study by the Center for Survey Research at the State University of New York at Stony Brook asked 865 workers if they would prefer a job with health coverage and a lower salary or a job with no health coverage and a higher salary.  Seventy-one percent said they wanted the job with health coverage and a lower salary.  The same survey showed that 20% of respondents were unhappy with the health benefits their employers offered, while 50% were worried that their health benefits would be cut back. All things being equal, employers with better benefits will have a competitive advantage. Candidates now routinely want to know how much they will have to layout in monthly premiums, what the co-pays and out-of-pocket costs will be, and what the plan covers. Employees generally look for minimum levels of benefits with a reasonable employee contribution, but are not overly sensitive to small differences but if the competition’s offering decent benefits and you’re requiring them to pay a majority of the costs, it will cause problems. Many larger employers clients have kept monthly family coverage premiums to less than $200 a month but any employer who asks employees to pay more than $200 a month for family coverage may stand out.

    Companies that choose to cut their benefits are going to have a hard time attracting quality candidates, & companies offering generous health-care plans will definitely have a competitive advantage in recruiting & retaining.

    Most employers have a less-than-clear picture of what their organization earns on benefits dollars invested, in spite of sizeable dollars spent. In a survey by PricewaterhouseCoopers’ Saratoga Institute of more than 100 mostly larger employers—those with 10,000-plus employees—the median employer spent about $16,000 per worker on benefits in 2002. Figuring out what a company earns on its investment in a retirement program is challenging because few employers do not provide one, making it hard to set up a control group. Calculating an ROI for a health-care plan is also tough. The Saratoga Institute, a division of PricewaterhouseCoopers, attempted to assess health-care spending’s impact on employee turnover rates and costs associated with turnover. Surveying more than 100 employers, most with 10,000 or more employees, it found that those spending more than median on health care, $5,403, had a lower average turnover rate than those spending less than the median—10% versus 15%, respectively. For a 10,000 that would translate into turnover-related savings of 33%, or $36 million annually i.e. 500 fewer departing EEs, multiplied by per-employee turnover costs of $71,827.

    Trivia - PPOs are the Most Popular Form of Health Insurance

    1. PPOs continue to be the most common form of health coverage, with more than half (55%) of all employees with health coverage enrolling in a PPO

    2.  HMOs, which cost significantly less than PPOs, cover about 25% of covered workers

    3. Conventional, or indemnity, benefit plans have all but disappeared, covering just 5% of covered workers

    Source: The 2004 Annual Employer Health Benefits Survey released by the Kaiser Family Foundation and Health Research and Educational Trust  www.kff.org/insurance/7148/      What are your healthcare data needs?

    Health & Welfare Brochure (.pdf file) & a technical 5 page White Paper about FlexCash

    Full-Flex brochure & diagram (.pdf file)

    Example of a simple one page, consolidated confirmation statement  (.pdf file)

    Example of a single page, consolidated enrollment form (.pdf file)

    Example of a consolidated single-source List-bill (.pdf file) (combined Life products) (part a)

    Example of a Summary (.pdf file) of combined Life product Bills (part b)

    IRS Model COBRA Election Notice in WORD .doc format - NOTE: Read the following statement from the DOL

    IRS Model COBRA General Notice in WORD .doc format - NOTE: Read the following statement from the DOL

    Statement from the DOL: "Until final COBRA notice regulations are published and become effective, plan administrators may use the proposed mode notices to satisfy their COBRA notice obligations, although they are not required to do so." (The proposed regulations will not become effective until six months after they are issued, and the DOL expects to issue the final regulations early in 2004.)

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