Many companies have evaluated the increasing premium costs associated with their group medical insurance programs and have looked for ways to improve cash flow and economize on the budget for employee benefits. This has given rise to partial self-funding and insured stop-loss managed platforms. Any company that is not using this type of a plan is probably spending a great deal of money unnecessarily.
The concept of a partially self-insured platform is to eliminate or substantially reduce some expenses – most notably the profits made by big insurance companies. Most of the myths concerning Self-Insured plans help big insurance companies and their agents keep business on fully insured plans. Remembering the annual premium increases reward the insurance company, the agent or broker that sells it to you.
- Too Risky- Properly designed plans with adequate stop-loss reinsurance policies to limit liability, create a functional “fully insured” plan.
- Too Small- Stable companies of 50 employees have successfully managed and thrived with self-insured health plans.
- Too Confusing– Did you know that roughly 100 million Americans are covered by their employer’s self-insured health plan? 57% of all health benefit plans in the United States are self-funded. So obviously there are plenty of people who understand well enough to reap the rewards of this type of program.
The benefits of a self-insured plan is more than just reducing the cost of medical premiums, if you want to learn more please visit www.theopensolution.com.