Sets Large Trends for Self-Funding Healthcare and Workers Compensation Industries

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There is a shift away from offering fully insured benefits and towards self-insuring healthcare and workers compensation. Moreover, healthcare reform puts more obligations on fully insured health plans, this shift grows in order to maximize savings and reduce healthcare expenditures.

Introduction to Self-Funding

From Fortune

Partially Self-Funded Plans

Partially Self-funded Plans offer an alternative to traditional health insurance plans. They allow you to budget for small predictable claims while protecting the group against unpredictable catastrophic claims, through the purchase of stop loss protection. A partially self-funded plan can be written for groups with as few as 5 participating employees.

Advantages of a Partially Self-Funded Plan

Reduced Fixed Costs
All health insurance plans have administrative costs associated with the payment of claims. A partially self-funded plan typically saves 30% on these administrative costs over a traditional health insurance plan.Learn More »

Cash Flow
Unlike traditional plans where you pay a premium that funds claims IF and WHEN they occur, claims under a partially self-funded plan are paid only WHEN they occur. YOUR money for claims therefore, is only required when claims are paid allowing YOU to earn interest on YOUR money instead of an insurance company. Learn More »

Plan Flexibility
With partially self-funding you have endless possibilities for plan design. Copays, coinsurance, deductibles, covered benefits; excluded benefits can all be tailored to meet your needs. As the employer you truly have the ability to customize your employee benefits. Learn More »

Claim Utilization Report
Claim utilization reports identify claim trends specific to your group and allow you to better manage and control the costs of your benefit plan. Learn More »