The purpose of this section is to provide a brief overview of The Foraker Group Benefit Plan and what your nonprofit clients will need to know if they are interested in participating in the program. More detailed information along with a brochure and CD is available. In the meantime, and in light of a formal announcement made today by Dennis McMillian,

The Foraker Group Benefit Plan – Highlights

Overview

• October 1, 2008 is the official beginning date in which Partner organizations can participate in The Foraker Group Benefit Plan.
• Groups are not required to begin or join on this date – they may come into the plan at anytime with a new effective date. For existing Premera Blue Cross groups coming into The Foraker plan, please see Brokers, Consultants Submitting Quotes section below.
• The Foraker Group will offer its Partner organizations a group benefit program which will include:
  •  
    • Two health insurance plans
    • Life insurance (as part of the health benefits)
    • Optional dental, short-term disability and long-term disability
    • Health, life, short-term disability and dental benefits are provided in cooperation with Premera Blue Cross Blue Shield (PBCBS) of Alaska and LifeWise Assurance. Long-term disability is offered through The Hartford.
  • Rates will be initially established by underwriting each organization separately through Premera’s small community pool, thus, initial rates will be based on that pool. This means if the group was to be underwritten on a stand-alone basis, the rates would be similar.
  • The entire purpose of this program is to promote personal responsibility for its members with the result of improved and healthy lifestyles while establishing a higher level of stable health.

Requirements of Partner Organizations to Participate

In order to qualify to participate, current Foraker Partners must be in good standing.

Contribution Requirements of Partner Organizations

1. The Foraker Partner must pay a minimum of 75% of the employee’s health plan premium cost, and 50% of the dependent coverage if it is offered.
2. The Foraker Partner electing to offer the $1,500 deductible with Health Savings Account (HSA) must contribute at least 50% of the deductible amount into their employees’ HSA ($750 minimum per year). When they offer dependent coverage, it is encourage that they work with their EE (using a match which the employer can determine) to ensure that at least 50% of the dependent deductible is covered in the HSA.
3. The Foraker Partner must agree to participate in the Health Risk Management program. This means the Partner is expected to establish a wellness program within the organization and strongly encourage employees to take the Health Risk Assessment. In addition, we are asking the Partners to have their employees participate in other custom designed wellness initiatives.
4. If a Partner does not meet these requirements, it risks losing any incentives it may qualify for and ultimately may be terminated from the Foraker plan. (Of course, this does not mean the employer could lose coverage as they will still be enrolled in the small community pool with Premera.)

Funding Arrangements

• PBCBS will bill each Foraker Partner separately for costs in medical and dental coverage. Life and STD will be billed by LWAC. Costs for the LTD will be billed by Hartford.
• PBCBS will bill The Foraker Group for the cost of the enhanced HRM, web sources, coaching and biometric testing.

Partner Organization Incentives

• The Rasmuson Foundation will pay through The Foraker Group for the first three years of this initiative (October 1, 2008 – September 30, 2011), which is an approximate value of $100 per EE.
• The Rasmuson Foundation through The Foraker Group will make a $250 contribution to each employer on behalf of each employee participating in the HSA for the first two years ($500 total). This incentive will be available only to the first 2,000 employee lives covered in the $1,500 deductible HSA plan. 
• A rate credit of $10 PEPM will be granted for each group joining the Foraker plan to reflect 100% participation in the HRM.
• After the first 2,000 EE lives, other Partners may join the plan but would not be eligible for the HSA incentive. They would, however, be eligible for the duration of the HRM. In order to qualify for this incentive, the following criteria has been established:
  • Any current Foraker Partner must be in good standing.
    • Good standing includes payment of annual Partnership fee, and
    • Up-to-date on payment for services provided by The Foraker Group.
  • The first 2,000 EE lives enrolled in the HSA by their employer will receive this incentive from the Rasmuson Foundation through The Foraker Group.

Brokers, Consultants, Submitting/Requesting Quotes

• Only licensed agents, brokers and consultants that are appointed with Premera Blue Cross Blue Shield will market this plan.
  • A 5% annual commission will be paid to each broker that markets and places a Foraker plan with new and existing Premera employer groups.
  • Each broker will be required to sign an Agreement of Understanding upon receiving appropriate training with regards to how the plan will be marketed, all Partner requirements including HRM participation, funding, premiums percentages, in addition to plan designs, and all related coverage options.
  • Brokers will receive marketing kits upon completing the training sessions. Brokers will deal directly with Premera for all administrative needs, similar to doing everyday business.
  • Training sessions will be conducted. Initial sessions took place in early August with make-up sessions in September.
  • Quotes for existing Premera groups will go through the normal renewal process when requesting on the group’s anniversary. For off anniversary quotes, the regular renewal process will apply, however, there will be a new 12-month contract.
  • All quotes to be submitted to the following: ForakerRFP@Premera.com
  • Those brokers that have existing Foraker Partners will receive two proposals from Premera if you choose to go effective October 1, whether they renew that date or not; a regular PBCBS proposal and a Foraker proposal. You will need to request this specifically.