Why Employers Should Consider Self-Funding
Reason #1: Transparency
As health care costs continue to rise its causing employers to consider major changes to their health insurance plans. With the new ACA law the term “transparency” is getting a lot of attention in the healthcare industry as it creates a new savings opportunity for employers with self-funded plans.
The results are hard dollar savings that are both measurable and significant.
It’s no surprise that the costs of large insurance carriers that offer full-insured health insurance are rising rapidly due the increased medical costs, improvement for shareholder value and the medical loss ratios they have to adhere to.
Self-funded health plans often have lower administrative costs and allows employers to spend their premium dollars directly on health care costs rather than giving their money to the insurance carrier where part of that money goes to overhead, insured plan taxes, carrier profit margins and commission.
As a result, self-funded health plans are being received as a very cost effective option in the post ACA world for employers.
If you would like further information on whether or not this a fit for your company please feel free to call or email me.
Kingsburg • (559) 634-7114