What is the Premium Saver Not?

The Premium Saver plan is often confused for other types of health plans in the market. This article goes over some of the more common confusions and attempts to clarify what the Premium Saver isn't.

The Premium Saver is not a Health Reimbursement Account

The Premium Saver plan is often said to work like a Health Reimbursement Account (HRA). An HRA is an employer-funded account that helps employees pay for qualified medical expenses not covered by their health plans. Like an HRA, the Premium Saver plan pays out claims, however, the HRA only pays out what has been contributed or set into the employers HRA contract to be paid out. In an HRA, if the money is there, your claims will be paid for, but if it’s not, you would have to wait for the money to build up to be able to use it. However, the Premium Saver plan has a set amount of benefit which is usable on day one.

The Premium Saver is not a Hospital Indemnity Plan

We have been asked if we are like a Group Hospital Indemnity plan, which is a supplemental insurance plan designed to pay for the costs of a hospital admission due to sickness or injury and includes emergency room services for accidental injuries. That specific plan usually pays cash directly to employees. With the Premium Saver plan, the expenses are based on what is covered by the major medical plan and the claims are made payable to the providers, unless the insured can show proof of payment.

The Premium Saver is not like other Gap Plans

There are other gap plans in the market that have the same idea as our plan, but these plans have many exclusions that may include home healthcare, elective surgeries, bunion surgeries and some of the therapy options. The Premium Saver plan will cover these services if the major medical covers them, which then it will follow the major medical plan design.

About the Author

Kim White is the Project Manager for MWG Broker Services, a division of Morgan White Group. She has over 10 years experience in the insurance industry. She is responsible for the Broker Services quarterly newsletter and other marketing materials for agents and brokers.