Flexibility & Control
Health care reforms have greatly impacted the benefits landscape for U.S. companies. Coverage mandates, as well as the steadily increasing cost of premiums, have left many employers feeling powerless. Self-funding is a way for employers to take back control.
Though self-funded plans are impacted by many of the same legislative provisions as fully-insured coverage, there are some that do not apply, allowing employers the ability to choose the benefits that work best for them. For example, as the age of your workforce increases, so do their insurance premiums. Fully-insured plans can use age as a rating factor when determining premiums. Self-funded health plans are exempt from this requirement.
In addition, most self-funded plans are governed under ERISA (Employee Retirement Income Security Act) instead of state insurance law, which also helps to reduce plan costs.
With self-funding, copays, coinsurance, deductibles, as well as covered and excluded benefits, can be tailored by employers, who have complete control over the plan design. This flexibility allows employers to tailor their plan to meet the personal needs of their employees.
By utilizing the services of Self-Funding Partners, employers don’t have to worry about handling complex benefits issues in-house. Self-Funding Partners handles administrative services, plan management and employee service, while employers benefit from increased transparency, usable data and reduced costs.