CEO DATELINE - Financial Services Institute launches health insurance program for members
CEO DATELINE - Financial Services Institute launches health insurance program for members
- April 9, 2021 |
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Kathryn Walson
The Financial Services Institute on Wednesday announced the launch of a national health insurance program for independent financial advisers to obtain insurance for themselves, their licensed staff and their families. They can save up to 50% compared with the open market, according to an FSI statement.
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"Health care premiums larger than their mortgages can constrain their ability to reach their full potential. Our health insurance plans level the playing field for financial advisers, and they no longer have to shoulder their burden alone," Chris Paulitz, FSI's head of strategic initiatives, said in the statement.
To enroll, participants must be FSI members with a tax ID and an active CRD number (the Central Registration Depository number given to licensed brokers). They must also pass a medical questionnaire. The plan website notes that FSI can keep costs low by excluding people with very costly health conditions.
The new plans are national PPO (preferred provider organization) plans that allow covered members to go to virtually any doctor, and they comply with all Affordable Care Act requirements, FSI said. Plans are offered at three deductible levels: $2,500, $5,000 and $10,000; these are also the plans' out-of-pocket maximums.
FSI has established a "captive insurance company"—a wholly-owned subsidiary. The association partnered with Vault, a North Carolina-based insurance company regulated by that state's Department of Insurance.
The plan is issued to the adviser's business, which means the adviser is an owner of the captive insurance company and is represented by its advisory board, according to FSI.
If participants develop a condition "which leads to extraordinary claims, you may be subject to non-renewal. We expect this to be rare, but if it happens, you will be given ample time to find an ACA plan or another open market plan," according to FSI's insurance website.
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