Private Companies are Now Following the Valley Schools Model

Amazon, Berkshire Hathaway and JPMorgan Chase announced that they would form an independent health care company for their employees in the United States.  The three giant firms employ over one million employees.  Increasingly, large employers are forming alliances to purchase benefits for their employees.  The formation of this joint venture negatively impacted health stocks as they will have to negotiate lower costs.

Arizona schools districts have been ahead of the game through the formation of health benefit trusts and pools to reduce costs.  The Valley Schools Employee Benefits Group now holds tens of thousands of members in many different districts.  The Arizona nonprofit corporation has been providing what Amazon, Berkshire Hathaway and JPMorgan Chase are just now doing, which is pooling employees together to increase bargaining with health insurers, pharmacy providers, dental providers, life insurance, vision and other benefits.

Lower rates are not the only advantage of pooling employees.  The larger size also reduces fluctuation in rates for outliers that can cause a yo-yo effect on smaller employers.  For many, one or two very ill employees can cause a dramatic increase in costs.  These costs can be absorbed through stop loss reinsurance policies that are cost prohibitive for many individual employers.

There is no time like the present to look at new alternatives to protect your budget from rapid rate increases or reduced benefits.

Contact us here at Valley Schools to find out how our innovative model can protect your budget.

For more information, please visit our site at: myvalleyschools.org