We understand that this is the most trying of times for businesses.
Many insurers have recently released press releases on providing a one or two month temporary reduction in the premium for dental benefits and health benefits. Many of you have asked if this can apply with your Beneplan membership.
Beneplan is providing a variety of relief measures, however, a temporary reduction in rates is not one of them. Here are the reasons behind the decision:
- Refund of premium: Insurers are applying reductions for non-refund group plans. Since close to 100% of Beneplan's members are in full refund of premium funding models, it excludes this category.
- The co-operative self-corrects: every year, since 2001, all of the surplus on health & dental plans, plus surplus on life insurance, retail sales tax, and more, is fully paid to member-owners, except for a small IBNR equal to 5% of claims, and a deficit reduction amount that ranges in the best years of 5% to the worst years of 30%. This means that if the pandemic continues, or there is a second or third wave that depresses dental claims past spring/summer 2020, all of the surplus will be paid to members, and fully accounted for with a 3rd party audit.
- The co-operative is not for subsidization: the co-operative has always believed that businesses should not be subsidizing each other; rather, unusual and rare risks should be covered and minimized, but all companies should be accountable for their own claims situation. Therefore, a unilateral, across-the-board approach, would not be fair to some businesses. For example, essential businesses who continue to operate and are collecting more revenues due to the pandemic would be on the receiving end of this relief, although they may not need it as much as other businesses.
Beneplan will review each business's unique situation and address solutions to help that individual company. We believe this conservative approach to be the most equitable and fair solution for all.
Please talk to your advisor to find out how much your 2019 dividend is, which is paid in May 2020. Dividends are paid by direct deposit, so if you have not already signed up for electronic billing, please do so here.