With all of the focus that is put into managing and controlling health care costs today, it amazes me how many organizations still look past one of the most effective and least disruptive cost-saving strategies available to employers with 150 or more covered employees – self-funding your dental plan. There is a reason why dental insurers are not quick to suggest making a switch to a self-funded arrangement … it is called profit!
benefits cost control,
health care cost containment
On average, 11.9% of prescription plans are self-funded, with the vast majority (88.1%) of employers choosing to fully insure their prescription plans, according to UBA’s new Special Report: Trends in Prescription Drug Benefits, based on data from the latest UBA Health Plan Survey of more than 10,000 employer-sponsored health plans. Although self-funding has increased 9% from the past survey year, the move to self-funding is slow but positive among small groups (10 to 199 employees), while large groups are actually moving away from this model.
UBA Health Plan Survey,
prescription drug plans,
prescription drug cost,
More and more employers—especially mid to large size groups—are considering different types of self-insured financing mechanisms. UBA Partners are at the forefront of helping employers understand their options, and as a group of independent advisors bound by a code of conduct to actively cultivate, validate and share wisdom, we offer advisors and employers unparalleled local and national expertise.
captive insurance arrangement
With the rising cost of health insurance and the need to provide coverage to employees, we have noticed many employers taking advantage of becoming self-insured. While being self-insured isn’t for everyone, there are definite advantages, such as the possibility of saving money – especially if you have a healthy staff. But self-insured employer groups typically can only self-insure to a certain level. In other words, they can only absorb so much of the risk associated with health care cost. Stop-loss insurance is an insurance product that provides financial protection against the high cost of catastrophic health insurance claims. Understanding the different types of stop-loss is one of the first steps in knowing if self-funding the right solution for your group.
health care costs,
The Wilson Agency,
health care claims,
Self-funding is a very hot topic these days for a number of reasons. For small group employers offering a self-funded plan this means they can charge a composite premium rate based on the employee population versus the community rates that are based on each individual enrollee’s age. For all employer sizes this also means that they are not subject to all of the taxes under the Patient Protection and Affordable Care Act (PPACA), which alone can translate into a savings of 3% to 4% of their premiums.
health care costs,
self funded health plans,
consumer-driven health plan,
Cigna Collaborative Care Program,
By Josie Martinez, Senior Partner and Legal Counsel
EBS Capstone, A UBA Partner Firm
Many U.S. employers offer self-funded insurance plans, with most of them purchasing stop-loss coverage from insurance providers. Historically, most of these companies have been large employers. However, given the fact that self-funded companies could avoid many PPACA regulations, more companies, particularly those will less than 100 employees, are considering this alternative strategy. Popularity for self-funding comes at a time when employers, both small and large, are looking for more flexibility and lower costs while at the same time maintaining control in the design and financing of employee benefits. To further this cause, carriers are now providing more self-funding options for smaller groups in an effort to satisfy employers’ interests and provide their clients with creative solutions to control and lower costs.
health care costs,
health care reform,