How does the merger of the two Coastal Health and Welfare Plans into one large Plan save money for employers?
Answer…One large plan eliminates duplication of services in the audit ,actuarial ,legal ,and consulting area. There are lower governance costs and reduced administration expenses from the carrier because of a larger group. The larger group size also significantly lowers life insurance costs and stop loss premiums from insurance companies. These savings will be reflected in the employer’s premium rates over time.
