Q&A: Customer Testimonial

Q: Tell us about your company and its supplemental healthcare plan.

A: My daughter and I run a mid-sized manufacturing company. Since 2015, we've provided supplemental health coverage for ourselves and nine employees holding vice president titles and above.

Without a doubt, everyone values the additional benefits, and I firmly believe the program has helped me retain this highly skilled team.

Q: What led you to consider switching to ExecSelect in 2022?

A: The issue with my previous plan wasn’t benefits, administration, or service—it was cost. Between 2015 and 2022, my premium for the same benefit package, covering the same group of employees, had more than doubled, yet the carrier offered zero transparency. Our utilization was a mystery, making me question whether I was overpaying and missing the tax advantages such a program should provide.

Q: How did ExecSelect compare?

A: ExecSelect  matched—and even enhanced—our benefit package and ease of use. They provided a maximum premium estimate that was about 5% lower than what I was paying at the time, but that wasn't the main reason for the switch. What sets ExecSelect apart was their commitment to full transparency in both utilization and cost. If our final premium came in lower than the maximum, we only paid the actual amount.

Q: What were the results?

A: Here are the numbers for 2023: 

• Previous carrier’s estimated premium: $192,060
• ExecSelect's maximum premium: $182,454
• ExecSelect's final premium: $119,854

2024 (assuming a 7% increase from the previous carrier)

• Estimated cost with previous carrier: $209,000
• ExecSelect's maximum premium: $191,576
• ExecSelect's final cost: $137,632

Q: Is there a catch?

A: None at all! ExecSelect operates with a fixed loss ratio and doesn’t charge policyholders beyond that. The benefits remained nearly identical, so for me, there was no downside—only savings.

Q: Why are you happy with your decision?

A: The cost savings speak for themselves. Beyond that, I appreciate the enhanced debit card option, which covers more than just prescription expenses without having to file claims. Most importantly, the transparency makes me feel confident in continuing this program. I know exactly where my money is going and how it benefits my employees.

Seeking a balance:  Healthcare Premiums vs. OOP Expenses

Although salary remains king, employees also value benefits as part of an overall compensation package.

According to the latest employee benefits survey from ADP, 401(k) plans tied with dental insurance as the second-most important benefit for the first time in the survey’s seven-year history.

“Compensation is always foremost, but a close second are the benefits an employer offers. Together, these represent the entire compensation package, and that’s what employees weigh when considering a job offer or even staying in a job,” notes the survey.  “Employees want to feel valued, and benefits -- both medical and non-medical -- are a major way employers can fulfill that need.”  

Being an employer of choice today requires a comprehensive compensation package that includes personally tailored benefits.

Employees are navigating the challenge of balancing health insurance premiums with out-of-pocket expenses while preparing for unexpected health care costs. Many focus on keeping premiums as low as possible, although almost as many prefer higher premiums to avoid paying more at the time of care. However, over time, more employees have shifted toward lower paycheck deductions for health care costs, even if it means adjusting other benefits.

“With constant change in the health care landscape, regulations and the domestic and global economies, it’s critical that employers help employees navigate these uncertainties,” the report concluded. “The goal is to deliver a better overall employee experience and make employees feel valued, all to drive employee retention and attract the best people.”