HEM: How it Works
Combines any self-funded benefit program with stop loss protection and a cash smoothing mechanism.
In the event of higher claims than expected, cash smoothing mechanism covers them.
Level monthly payments during each year of the 3-year contract program.
Client’s monthly payment is adjusted after each year.
Client’s cash smoothing balance is factored into annual payment adjustment, as are actual claims paid.
Client’s monthly payment may increase to pay off its cash smoothing balance, or often decreases due to lower-than-expected claims.