A major component of compensation beyond salary involves the benefits plans offered to employees. The cost of maintaining a comprehensive program of medical, disability, dental and death benefit protection has become a larger part of the total compensation package since the prices for these coverages have risen sharply during the last decade. This increase is expected to continue to rise into the future.

General plan design is an important element of cost-containment. Levels of coverage, deductibles, co-pays, benefit maximums, Indemnity Plans, Managed Care Plans, networks, Health Maintenance Organization Plans (HMO), Point of Service Plans (POS), Preferred Provider Organizations Plans (PPO), etc. FSIA’s staff can assist the bank in matching all of these and other elements of plan design with the needs of the employees and the costs of such design to employers and employees alike.

For insured programs, the carrier's rates, reserves and retentions should be examined each year. They are open to review and to negotiation. FSIA's staff can assist in checking premium rates, retentions and reserves held by the insurance company to measure their appropriateness. In addition, we provide an orderly annual review of experience under the program, evaluating the insurance companies’ claims administration and financial underwriting performance.

For self-insured or partially self-insured programs, FSIA's staff can assist with the use of a 501(c)(9) Trust, Administrative Services Only (ASO) contracts with insurance carriers or other third party administrators.

All of these procedures can be explored as ways to improve the cost effectiveness of the program.