The Benefits of Self-Funding Healthcare

Self-Insured healthcare plans are increasing in popularity because self-insured employers can pay for claims out-of-pocket as they are presented, instead of paying a predetermined premium to an insurance carrier for a Fully Insured plan. Businesses are able to better negotiate administrative services and reinsurance as effectively as that of a larger, single employer. 

Facts about Fully-Insured Plans

• Lack of transparency

• Retrospective rating

• Volatile rate cycle

• Carrier shopping (switching different carriers every year, new cards, etc.)

• No direct savings from wellness initiatives 

Facts about Self-Insured Plans:

• Available to small employers. Companies must have a minimum of 20 employees covered on their medical plan.

• Full transparency
  • Monthly reports detail where every dollar is spent for claims, administration and insurance protection.
  • You are fully aware of rate development for their next renewal cycle.

• Total Control
  • You have collective purchase power of stop-loss insurance.
  • Specific claim utilization history allows you to make design changes to benefits both employees and your business. 

• Stability
  • You have real-time data throughout the plan year, which creates a more predictable healthcare line item. 
  • It allows a safety net for protection in both good and bad claim years. 

Learn more about our Genesis Healthcare Consortium, one of our self-funding consortiums. We would love to set up a meeting to talk about if your company would benefit from a self-insured market.