In today’s business climate, managers need benefits solutions as resourceful and cutting-edge as the organizations they run. For many employers, pre-packaged full insurance health plans do not provide the greatest value to their organizations. Employers of all sizes are looking to mold their plans around the requirements of their businesses.
A growing number of U.S. employers are making the switch to self-insuring as a way to reduce costs and improve service. While self-insuring or self-funding are not appropriate options for every organization, employers considering a switch from fully funded to self-funded health plans should analyze the advantages and disadvantages before making a decision.
When deciding if self-funding is right for your organization, make sure that you consider the following best practices to ensure that your self-funding strategy is appropriate and effective:
- Evaluate Stop-Loss Coverage
- Understand the volume and nature of your employee health claims for the past five years.
- Analyze Cash Flow
- Decide how to administer the program.
- Decide on Coverage Goals.
Healthcare and health insurance will continue to have a significant impact on business and benefits decisions, so it’s important to regularly review your options. And that’s where we can help.
