Aetna Funding Advantage Offers High-Quality with Affordable Cost
HARTFORD, Conn. – Michigan-based small businesses now have access to a new self-funded health product called Aetna Funding Advantage (AFA). The product was designed for small businesses that enroll five to 50 benefit-eligible employees that want to offer their employees a quality health plan at a reasonable cost. Aetna Funding Advantage offers a variety of plan options; Michigan groups have achieved up to 40 percent cost savings with AFA.Cost savings reported in 2018 by specific Michigan customers quoted AFA as compared to costs of their current medical plan offering. Savings vary by group based on group-specific demographics, employer industry and risk factors.
"Aetna Funding Advantage offers great benefits, some which were traditionally only available to larger employers. This is a differentiated product tailored to small business needs," said Kristin Myers, Aetna's President of the Great Lakes Market. "AFA offers the predictability of a fixed and affordable monthly payment, the financial protection of stop loss, and the opportunity to receive money back when claims are lower than expected. Our customers told us what they needed and AFA was designed to meet those needs. It's very exciting!"
Historically, small employers have offered their employees fully insured plans and made a monthly payment to a health insurer to cover both the medical claims and administrative costs of the plan. With AFA, benefits coverage is offered and funded by the employer, with administrative services and stop loss insurance coverage provided by Aetna Life Insurance Company. Employers will pay a fixed monthly amount with AFA based on a percentage of maximum expected claims, as well as administrative fees and stop loss premiums. If claims are higher than this maximum expected claim amount, stop loss coverage provides financial protection for the employer.
- Potentially lower monthly payments, taxes and fees
- A wide range of benefits and a broad portfolio of product options
- Financial protection and fixed monthly payments
- Monthly reporting to understand the company's health performance
- The opportunity for shared savings after renewal
- Unique value adds, such as digital health coaching and other consumer technology
- Innovative technology to help administer the plan and generate automated reports
"Aetna Funding Advantage was designed to provide high quality benefits for smaller employers and their employees at an affordable price," said Myers. "We're very excited to launch AFA in Michigan and to bring this differentiated offering to an important market for Aetna."
Aetna Life Insurance Company began quoting Aetna Funding Advantage on May 1, 2018. Michigan-based small businesses can begin coverage with effective dates starting July 1, 2018. Read more about the Aetna Funding Advantage.
Aetna (NYSE: AET) is one of the nation's leading diversified health care benefits companies, serving an estimated 40.3 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, and medical management capabilities, Medicaid health care management services, workers' compensation administrative services and health information technology products and services. Aetna's customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.