Frequently asked questions about NJ insurance products and services
What is the difference between an insurance agent and an insurance broker?
Small business and Individuals face many choices when deciding on the proper insurance needs. As a rule, you can purchase their insurance from one of two sources — a captive insurance agent who represents a single company, or an independent agent (sometimes called an insurance broker) who represents many different companies. As an independent insurance agent, RD Parisi Associates believes in being an advocate for the needs of our client, not the insurance companies. As such, we research each of the leading insurance companies to deliver a solution the fits our clients’ needs as well as their budgets. RD Parisi Associates has proudlyserved as a leading insurance agent across northern New Jersey for the past seven years.
How will health care reform affect my small business?
This is the first question that many small business owners ask they insurance agent or broker. The new health care reform law is very complex, and its impact on small businesses depends on the average number of full-time employees, average employee annual wages, and other factors. Whether or not reform will increase or decrease insurance cost is subject to much debate and yet to be determined, but some of the major provisions include:
- No lifetime limits on coverage — Insurance issuers may not establish lifetime limits on the dollar value of benefits. Prior to 2014, providers may impose a "restricted annual limit." The current annual limit minimum is $750,000. The annual limit minimum rose to $1.25 million on Sept. 23, 2011, and will increase to $2 million on Sept. 23, 2012. Annual limits on coverage will be prohibited beginning in 2014.
- An end to pre-existing conditions — Health insurers cannot deny children health insurance because of pre-existing conditions. A ban on the discrimination for adults will take effect in 2014.
- Small business tax credits — Depending on the number of employees and average wage scale, your business could be eligible for tax credit up to 35 % of the company’s share of healthcare costs.
- Expanded child coverage — Dependent coverage of children must be made available for an unmarried child until the child turns 26.
- No lifetime caps — Lifetime caps on the amount of insurance an individual can have will be banned. Annual caps will be limited, and banned in 2014.
These are just a few ways in which small businesses in general will be affected by healthcare reform. For more information on the specific ramifications to your business, contact RD Parisi Associates.
What makes RD Parisi Associates different from other NJ insurance brokers?
For nearly a decade, RD Parisi Associates has taken a leadership role in providing the NJ business community with the best possible benefit packages for their employees. We work directly with all the major insurance companies and administrators to design, develop and implement custom programs that help you attract and keep top talent:
- Employee health programs
- Group life insurance
- Group dental & vision plans
- Self-funded plans
- Short- & long-term disability
- Individual life & disability
- Voluntary insurance products
- Flexible spending accounts
Our goal is not to be the biggest or to drive revenue at the expense of customer service. Instead, our mission is to provide unparalleled personal service to a select group of businesses and individuals in the New Jersey insurance marketplace.
Is self-funding (self-insurance) an option for my business?
Traditionally an option for businesses with 200+ employees, self-funding has increasingly become the program of choice for groups with as few as 25 employees. With rates increasing from 10-25% annually, there are now excellent plan management and cost containment options for smaller employers that in years past would not have been candidates for self-funded insurance plans. In addition to saving money on premiums, businesses can realize the following benefits:
- Option to maintain same benefit level for employees
- Multiple provider networks available
- Built-in, seamless Flexible Spending Account administration
- Built-in COBRA Administration and compliance
- Full access to medical and prescription claims data, which allows for ongoing cost control based on claims history rather than pooled industry trends ( a huge advantage for managing your costs)
- Control and choice covering state-mandated benefits
- Stop loss insurance which eliminates the risk traditionally associated with self-insuring
Have an insurance question we haven’t answered here?
Email Patrick Cassidy of RD Parisi Associates or call (973) 243-5500 and we’ll be happy to help.