February 17, 2014

Is Self-Funding Right For You?

Health care costs rank among the top concerns of U.S. Employers. How to design and finance a quality, yet affordable benefit plan is a question on every employer and corporate executive’s mind.

Self-funding benefits for employees have become a growing trend since the late 1990’s. It is estimated that over 57% of all health plans in the U.S. are self-funded. So what is it that draws employers away from being fully insured to self-funding instead?

The following is a sampling of the advantages you receive by choosing a Self-funded Plan:

  1. More flexibility in plan design: As insurance carriers work to meet Medical Loss Ratio (MLR) requirements and try to cut administration cost, they end up offering fewer plan designs, resulting in limited choices for employers. Self-funding allows the employer to design benefit plans that are tailored to the needs of their employees, allowing for a custom plan that aligns with unique benefit budgets.
  2. Competitive options: The fully insured arena is dominated by just a handful of companies. With self-funding you benefit from a broader market of stop-loss companies to maintain a competitive marketplace.
  3. View and manage your claims information: With a fully insured carrier, your access to claims data is limited. These limitations put your company at risk for overpayment and under insuring your employees. With the Unified Group Services, you can access your claims data as current as yesterday’s close of business. This allows you to customize your benefits and value-added programs to build a better work environment with healthy staff.

With a self-funded plan, your company can take control of your assets and cash flow while providing a customized solution to health and wellness for your company.