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:
- Now available to small employers
- 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.
- 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.
- 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 plan.
Our Employee Benefits team was just voted “Best Employee Benefits Firm” by the readers of the Central Penn Business Journal!