Tired of having your clients complain about year-over-year premium increases? Ready to be the hero your client needs? The future of integrated employer-based healthcare is here. Guide your client down a path of meaningful year-over-year savings and present these 5 advantages to adopting a self-funded healthcare plan in your next benefits meeting:
What are the benefits of self-funded health plans?
Pay as you go:
A company with a self-funded plan does not pre-fund its claim costs, they pay claims only as they are incurred and not to exceed conservatively structured gaps and limitations. This allows the company, not the insurer, to invest and receive returns on all unused claims funds.
At the end of the plan year in which claims have been lower than anticipated, a traditional insurer keeps the premiums and no savings are returned to the fully insured company. In fact, often the carriers even have the audacity to ask for an additional double-digit increase at renewal. With a self-funded insurance plan, when claims paid by the company are lower than anticipated, the COMPANY keeps the savings.
In a traditional fully-insured plan, a company is liable for state premium taxes on the total plan cost which represent approximately 3% of their total premium. In a self-funded plan, however, the plan is only responsible for state taxes on a fraction of the plan cost.
Financial and administrative control:
An Evolution self-funded healthcare plan allows a company to operate efficiently and effectively, detect areas where modification of systems and processes may be desirable or necessary, and continually improve plan operations with a goal of optimizing plan performance to satisfy its employees and save money on health spend.
Plan flexibility and customization:
The flexibility of a self-funded health plan allows a company to custom design a healthcare plan tailored to its employees’ specific benefit needs. Traditional insurers offer “one-size-fits-all” plans, forcing a company to pay for benefits its employees will not utilize or potentially unable to offer specific benefits its employees need.
Leading your clients through the transition from fully-insured to self-funded can be daunting. At Evolution Healthcare, we specialize in educated consulting and guiding brokers and employers through the entire process in a seamless, effortless way. We have the experience and happy clients to prove it. You are not alone. Contact us to get learn more about how you can help your clients achieve these benefits.