TRUSTS LTD. Bespoke self-funding trust specialists

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1 Bespoke self-funding trust specialists

2 What is self-funding in trust? A corporate healthcare trust is similar to group insurance, but instead of meeting premiums, the company or public sector body forms a trust, and then pays money into the trust s bank account to meet any private medical fees incurred by its scheme members. Self-funding in trust for employees private medical treatment is really straightforward. In fact, it operates in a very similar way to private medical insurance. For example: Employees can be covered for existing and on-going medical conditions Your company can choose to transfer the existing benefits into trust The claims process is the same with bills settled direct with the medical provider The reporting of group joiners and leavers are the same The claims reporting and analysis is much better because your company can see the up to date picture as the previous days close of business

3 Self-funding in trust v Private medical insurance 170 Self-funding Medical insurance Contributions ( 000) st 2nd 3rd Years 4th 5th This graph clearly illustrates that the effective claims management and cost control of self-funding for employees private medical treatment will stabilise your company s private healthcare benefit costs in both the short and long term. In the USA, 90% of large companies choose to use self-funding in trust for private medical treatment in trust as the preferred funding option, and now you can see why.

4 Why is selffunding in trust better for your company? Although the benefits of self-funding in trust is 80% the same as for private medical insurance, for the remaining 20%, please forget everything you know about private medical insurance. Self-funding in trust is as close as your company can be to having your own internal department looking after the private medical treatment needs of your employees. Apart from being tax efficient, selffunding employee s private medical treatment in trust can be tailor-made straight away or over time to your own company s specification until it fits like a hand made glove. Self-funding in trust management charges are always lower than medical insurance charges and our charges include: The trust deed Service level agreement Providing bespoke membership handbooks Providing trustees Claims administration On-line trust administration On-line claims reporting and analysis Your human resources department can look forward to spending less time on dealing with the company s private healthcare administration and your company can enjoy long term stability of private medical costs.

5 How do we reduce your company s private medical costs? Private hospitals around the country always have plenty of empty beds to fill and our experienced team can negotiate a fixed price that will deliver a substantial discount off private hospital charges. Your company s private healthcare requirements could be: To provide employees private medical benefits without paying insurance premium tax To substantially reduce the cost of administration and management charges To benefit from the lowest cost of private medical treatment available within the employee s local area The ability to have a tailor made benefits schedule to suit your company s specific needs or retain the existing benefits To enjoy a tailor made service that fully meets your company s own high quality standards We also attract additional discounts for pre-admission payment of the hospital s bills. When high cost claims such as cancer occur then, subject to your company s instructions, we can case manage the treatment into NHS centres of excellence, saving your company s trust fund substantial costs. We can build effective cost containment measures into the benefit design, to your company s exact specification. The benefit design can also build in affordable preventative treatment to reduce the incidence of more expensive acute claims. All this adds up to a substantial saving for your client company of up to 25% - including readmission to hospital for any complications.

6 Our aim is to achieve the lowest possible private hospital charges every time your company s employee needs private hospital treatment. The private medical insurance companies do none of the above! The advantages of self-funding in trust are: No insurance premium tax to pay Ability to design bespoke benefit package Cost of claims typically up to 25% lower than equivalent medical insurance cover Interest paid on surplus funds held in trust Client company branded literature Maximum claims liability limit available High quality product and service proposition for your client company s staff Nurse-led claims management Web access for Group Administrators for up to the minute claims and policy information, 24 hours per day Employee access via web to policy and claims information, documentation and information

7 Your company s trust can buy insurance protection The good news is almost all companies that buy private medical treatment in trust operate a surplus of funds over a typical five-year period but there will always be a year when several catastrophe claims occur and claims exceed expectations. For companies running a surplus balance carried forward from previous years, the impact of catastrophe claims can be absorbed. If there are insufficient or no surplus funds held in trust then an insurance stop loss policy can limit the trust s liability to a known maximum. Either way, the risk can be contained to the client company s satisfaction. Your company trust can: Hold the surplus funds in trust to reduce both the renewal costs and the employee s benefit in kind tax Use the surplus funds to buy additional benefits Retain the surplus funds in trust as a provision against a future higher than average claims experience The company can have a contribution holiday until the surplus funds have all been used to pay claims

8 On-line administration Your company will be able to add or remove employees by . The latest claims, medical management information and claims analysis will be available on-line. All information will be up to date from the previous working day. If you find your medical insurance company is failing to contain costs then discussing with Proactive Medical & Life the advantages of using our services will be the first step to effective and long term cost management. There will be secure access to claims and medical management information for authorised persons. Self-funding private medical treatment in trust is the only growth area in the private medical benefits industry as confirmed by independent experts Laing & Buisson.

9 To enjoy a tailor made service that fully meets your own company s high standards. Contact us now for a no obligation meeting!

10 FREQUENTLY ASKED QUESTIONS 1. Does insurance premium tax apply? 2. Is the cost eligible as a business expense? 3. Is there an annual contract? 4. How is the administration charge calculated? 5. How is the claims fund calculated? 6. Can the client have tailor made benefits? 7. Can the client transfer existing benefits to the new provider? 8. Can the client change benefits at any time? 9. Can different benefits apply to employees and dependants? 10. Can an excess or co-payment be discretionary? 11. Can all private hospitals be covered? 12. Can cost containment & incentives be put into benefit design? 13. Are all day-case & in-patient procedures case managed? 14. Are additional discounts for cash payment of claims available? 15. Are all specialist and hospital bills paid direct? 16. Are comprehensive claims reports + analysis available 24/7? 17. Can the client buy stop-loss insurance cover?

11 PRIVATE MEDICAL INSURANCE 1. Yes - currently 6% 2. Yes 3. Yes 4. Usually a percentage of the claims fund 5. Usually based on the last 3 years claims 6. No 7. No 8. No 9. No 10. No 11. Restricted to insurer's hospital network 12. No 13. No 14. No 15. Yes 16. No 17. No - (except on a cost plus contract) SELF FUNDING IN TRUST 1. Insurance premium tax is not payable 2. Yes 3. No - there is a 12 month review 4. Usually a per capita fee 5. Usually based on the last 3 years claims 6. Yes 7. Yes 8. Yes 9. Yes 10. Yes 11. Yes - at the client company's discretion 12. Yes 13. Yes 14. Yes 15. Yes 16. Yes 17. Yes - both specific and aggregate available

12 Call us on or us at Clarendon Business Centre, 125 Shenley Road Borehamwood, Herts WD6 1AG