Ternian Insurance Group Offers New Executive Benefit Plan

While many people in the insurance industry believe that executive benefit plans are no longer viable in light of non-discrimination testing, there has actually been a huge resurgence of interest in these plans as of late. A new executive plan from Ternian Insurance Group includes “excepted benefits,” meaning they are not subject to the Patient Protection and Affordable Care Act or Section 105(h) benefit discrimination testing by statutory definition. These new plans will fill a significant gap in the marketplace for employers looking to attract and retain executive-level talent.

Executive plans are often designed as packages of health benefits, concierge services and other special perks and programs. They may include cash payments that can reduce a member’s out-of-pocket expenses for costly medical services like hospitalizations or outpatient surgeries. Plans like Ternian’s also offer value-added products and services such as telemedicine, critical illness coverage and travel assistance programs.

“We’re seeing a lot of interest in our executive plan product within the large employer market, especially now that some of our competitor’s plans that didn’t pass muster with the new non-discrimination rules have gone away,” said Timothy Cook, partner at Ternian Insurance Group, an independent insurance broker offering a new executive plan product. “These employers still need valuable packages to attract seasoned executives and reward them for their hard work and dedication.”

Ternian’s plan offers flat fee cash benefits for specific medical needs — from ER visits to hospital admissions and inpatient surgery. It also includes up to $100,000 in potential payments and provides value-added benefits including health, wellness, travel and entertainment programs and services.

Employers weighing whether or not to offer an executive benefit product to their leaders or highly-skilled workers should carefully consider a few factors. The first and most important is that health benefits included in the plan are considered excepted under PPACA. The second is that these benefits should be non-coordinating, which allows them to be paid out on top of other existing coverage. Ternian’s new product offering meets both of these requirements. As a result, its benefits will be more valuable to employees, making the plan a much more effective recruitment and retention tool.

For more information about the IRS guidelines on Section 105(h) in light of recent changes brought about by healthcare reform, visit http://www.irs.gov/pub/irs-drop/n-11-01.pdf.