Saving Police Officers money on Health Insurance, Employee Benefits

After almost 30 years of police work, I can almost say that I’ve seen everything.  Some things I can’t remember……other things I can’t forget…no matter how hard I try.

I do know that many police officers, dispatchers and office workers within the police department or sheriff’s offices can save a TON of money with their City Employee Benefits.  Most officers don’t know that you can go outside the framework of the Employee Benefits that you have offered to you, and purchase it on the “open market” much cheaper.

In certain cities, the employees can “opt out” of their Health Insurance and choose to purchase it on their own.  The employee then receives the money that the City WOULD have spent on their Employee Benefits in their checks each month.  In the City Police Dept that I worked, that was in the neighborhood of $1500 a month.  Many of the officers took that $1500 in pay, called me, and I was able to get them a comparable plan for about 50-60% LESS!!  That’s a savings of about $9000 a year.  Many of these same officers have come to me after 2 years and have told me that they have put a majority of that money into savings, college funds, vacations…etc.!

I would be skeptical too.  How is it that there could be THAT much of a difference between the plans.  The answer is actually pretty simple….when you have a large group of people, the prices of the plans are based on what they call a “composite” rate.  This means that no matter what age you are, the price is the same.  An 21 year old pays the same rate as a 63 year old.  So what ends up happening, is that the younger officers are paying WAY more than they would if the premium was “age banded”, meaning the price is calculated on YOUR age, NOT the group.  The result is that going on the open market, younger people have a much cheaper rate than the older folks.  As a side note, when you use a broker like me, or go “direct” to the insurance company, the price is the same….the commission is built into the monthly premium.

Right now, the City Blue Shield plan for a single officer, age 29 is $676 a month.  MY comparable plan=  $97 a month.  Now, there ARE some differences and you have to go through underwriting for the $97 a month plan…..but the differences are NOT worth an additional $579 a month.  Its a very comprehensive plan that I would feel totally good putting my own daughter on.

As a side note, once this has caught on, I have probably signed up almost half of the 175 officer Police Department.

At Brauer Insurance, our motto is “To Protect and To Serve”….its what I’ve built our business model from!  Call me and I can walk you through the steps of how to make that happen for you!

Steve Brauer, Brauer Insurance Services, (408) 421-5555, 3150 Almaden Expwy, Suite 203, San Jose, CA 95118

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