Partially Self-Insured Group Plans – An alternative to paying fully insured prices…….
If you have at least 51 employees enrolled in your group medical plan, there is a good chance we can show you a less expensive way to pay for it.
Partially self insured (we stress the word partially) group medical insured very often is a significantly cheaper way to buy exactly the same (or even better) group medical benefits than you currently have. This is not an idle sales pitch; many clients are not aware of this alternative until we show it to them.
You (your company) will know the maximum you can possibly pay every 12 month policy year, and we will not allow the proposal to be more then you are currently paying. With even average medical claims, you will pay less, but in a 12 month policy year, you will not pay more. With better than average claims, you will be very surprised at the amount of savings.
With some data from you about your company, our proposal is free, with no obligation. Medical costs to you are rising probably more than anything else you buy. Give us a chance to show you something creative and less expensive with no compromise in quality of benefits.
Advantages of Partially Self-Funded Plans
By partially funding claims directly, an employer avoids the costs of claim reserves, retention to cover the insurance company’s administrative costs, profit margin, risk charges, premium taxes, and a contingency margin, which are included in an insured premium in addition to the costs of expected claims. Reserves and retention charges can range from 10% to 30% of the annual premium costs.
Increased Financial Control
Most employers with partially self-funded plans pay claims as they come due each month (through an arrangement with a Third Party Administrator) rather than funding them through advance premium payments, which mean that you are investing your money instead of an insurance company. Reports and documentation of how every dollar is spent are provided at regular intervals.
Self-funding allows employers to design a health benefit plan to address specific business owner and/or employee needs, as well as company objectives. Self-funded plans are also exempt from state insurance laws that typically mandate certain benefits for insured plans, which increase costs.