Is there any good news in regards to healthcare? The answer is….. Yes!
The majority of the news associated with healthcare is negative. The benefits of insurance plans have eroded while the cost associated for employers and their employees has risen. Many small to mid-size employers renew each year and feel the options associated with employee benefits are limited. However, there are new options available that many small to mid-size employers have not discovered. Partial self-funding insurance plans are now available to small and mid-size employers. These plans offer many advantages to employers and should be reviewed as options.
Advantages to employers include:
- Benefit Design- These plans do not have to adhere to benefit mandates which assist with lower premiums and superior plans designs. These designs include lower deductible, co-pay and maximum out of pocket options.
- Tax Savings- These plans are exempt from some health insurance carrier fees and generally are not subject to state premium taxes.
- Surplus- These plans track total claims paid versus premium. If claims associated with the insurance plan are lower than expected an employer could qualify to receive premium dollars back.
- Provider Networks- Many major insurance carriers such as Aetna, Anthem, Cigna and United Healthcare offer partially self-funded plans. Networks associated with these carriers include HMO, POS and PPO options. These networks provide deep provider discounts which are important for consumer driven health plans.
Is your organization a good candidate for partial self-funding? How will you know? How can an employer determine if they could benefit from a self-funded plan? We are here to help:
- Spherient Advisors is appointed with all local, regional and national insurance carriers. We will research all available options.
- Our team has the experience and expertise needed to evaluate the insurance contracts and plan options.
- Researching these options will not jeopardize your current insurance plan offered. An employer can evaluate these options safely and only move forward if competitive proposals are obtained.
Let the Spherient Advisors team share some good news with you!
Steven Parent, CBC
Principal, Benefit Consultant