Dear Franchisees:
We are aware of the efforts and grateful to Barry Weiss of Sherman Oaks, CA in seeking a solution for health insurance offerings that franchisees can take advantage of. As you may know, Home Office has sought solutions for franchisees previously. However, the programs we identified required Home Office to be treated as the employer of your independently owned & operated businesses (as it relates to health insurance). It is against our interests and yours to have such structure, and therefore, we have been prevented from making a program available to you.
The healthcare insurance industry is complicated, to say the least. We understand needs vary across business, geographies, and people. While we understand that obtaining affordable healthcare is an important issue for many franchisees, we are not in a position to determine what type of healthcare plan will work best for you and your employees. Healthcare needs are unique and many factors affect healthcare costs. It is up to you to determine what type of healthcare plan works best for your business.
Mathnasium has not reviewed the potential group health care plan referenced in the Google Groups post and has no current plans to review or analyze any health insurance plan that may be proposed by any franchisee. We have had a few conversations with the third party structuring this plan. Based on our limited expertise in this area, it appears to us that this plan is a self-funded insurance plan with a 3rd party insurance component.
Please note that Mathnasium is not endorsing, participating or sponsoring any healthcare plan, regardless of whether a particular franchisee chooses to do so. Self-funded healthcare plans have their advantages and their unique risks and are different from fully-insured group plans in which the employer contracts with an insurance company to cover its employees and dependents. It is your responsibility to evaluate the program and its benefits, understand the risks involved as a business owner, and determine whether your participation is appropriate. We recommend that you seek advice from your insurance broker and/or other professional advisors to understand the risks & benefits before entering into any health insurance plan.
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