Group Health Plans of Louisiana
                                           1-888-456-1858/504-456-1858   Fax 504-885-4640
                                                        ..........  located in the "big easy" in New Orleans, La.

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What is..... TREND LEVERAGING..................... IN PARTLY SELF FUNDED PLANS

if you are self funded or partly self funded.......................

and a large claim, say $100,000,  increases in raw cost 10% for the next year. 

The claim in the next plan year will be $110,000.  $10,000 more due to medical inflation
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If your specific ("spec") deductible is $25,000......... but on renewal the reinsurer wants an increase of 20%

& your  broker tells you that the only way to keep your " fixed costs"  the same  is to go to a higher

specific deductible  $30,000. ............................ (And a higher aggregate deductible as well)

 Then the math shows that while in general, health care inflation costs may have risen 10% ,
 your costs with the increased specific deductible will rise  20%.

 ($30,000 spec -$25,000 spec deductible = $5,000 increase in self funded claims.)
 (Assume an identical claims year;   (5000/25000)= 20%)
 Your costs rise 20% and you  can look forward to that every single year !
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I AM FULLY INSURED......................why do my costs go up so fast?

What is..... Deductible Leveraging.............................Fully insured health plan

Deductible leveraging is the cost added to a health plan due to the subtraction of an
unchanging deductible from a trended claim amount.

Suppose a claim of $500 increases by 10% in the next year to $550. 
If the deductible is $200, the insurance cost increases by 17% from $300 to $350.

The deductible leveraging is the difference between the 17% medical insurance claims cost
and the 10% medical inflation cost.

Call Group Health Plans of La. to get a money saving plan design and lower cost health insurance.