Meet Byron Jennings, a graduate of Prairie View A&M University who is now the founder and CEO of Next Generation Payroll, the largest Black-owned payroll, HR, and benefits provider in the country that uses its own software. To celebrate six years in business, Byron has announces that his firm is partnering with major health insurance carriers to promote group health plans that are eligible for premium refunds.
Insurance providers such as Aetna, Blue Cross Blue Shield, and Allstate have long offered group health insurance plans that rewards employers who keep their staff healthy and keep their insurance claims low. At the end of a 12-month coverage period, a business can receive a rebate check in the mail if the company didn’t rack up an exorbitant amount of insurance claims in a 12-month period.
Small businesses are always seeking to work with an insurance broker to purchase the lowest premium health insurance policy on the market. That’s no longer the winning strategy that improves a company’s bottom line. Decision makers are now starting to focus on how much money they can get back in the form of a health insurance rebate instead.
Fully funded insurance plans are founded on transferring the risk associated with paying for 100% of healthcare-related claims to a health insurance provider in exchange for paying a monthly premium. Self-funded insurance is the complete opposite and allows a business to “assume the risk” of being responsible for paying for their own healthcare costs. Since a business is using its own financial resources to pay for health insurance premiums, they are in control of its own money and is entitled to have it “credited” back to them when they don’t use It’s a concept that is completely overlooked in the small business community.
Byron comments, “We have all heard that high risk yields a high reward, and more entrepreneurs are getting on onboard with the health plans that my company, Next Generation Payroll, is promoting without hesitation. Adding a stop loss insurance plan to the deal essentially eliminates the risk by providing resources to pay for the occasional excessive health insurance claim.” It’s an all-around win for the business with only three possible outcomes:
Employers utilize 100% of the premiums they allocated for health insurance coverage within a year. The company makes good use of resources and didn’t waste money.
When you don’t use all your health insurance funding, you will get a percentage of the unspent insurance premiums refunded to the business. This will result in a refund of several thousand dollars depending on the size of the company. The refunded dollars can be used on other aspects of the business, taken as profit, or invested in the employees.
If a company’s health insurance claims rise above a company’s accumulated health insurance resources, a stop-loss insurance policy pays for all the health claims above the saved value. Hence, businesses are protected against paying for excessive health care claims as the worst-case scenario becomes a cost savings event for the company.
Byron continues, “Self-funded health insurance plans not only to help keep companies costs down, but they also often times provide much better coverage for the benefits of the employees. We encourage all of our clients to travel down the road less traveled.”
Next Generation Payroll is principally a payroll, HR & benefits provider located in Dallas, Texas, that services small businesses across the United States. The company was launched in 2017 by entrepreneur Bryon Jennings who is a group health benefits broker that educates the small business community on navigating employee benefit options. He graduated from Prairie View A&M University, an HBCU located about 40 miles outside of Houston, Texas.