Blog | small business

Since the ACA was enacted eight years ago, many employers are re-examining employee benefits in an effort to manage costs, navigate changing regulations, and expand their plan options. Self-funded plans are one way that's happening.

In 2017, the UBA Health Plan survey revealed that self-funded plans have increased by 12.8% in the past year overall, and just less than two-thirds of all large employers’ plans are self-funded.

Here are six of the reasons why employers are opting for self-funded plans:

Small employers, those with fewer than 100 employees, have a reputation for not offering health insurance benefits that are competitive with larger employers, but new survey data from UBA’s Health Plan Survey reveals they are keeping pace with the average employer and, in fact, doing a better job of containing costs.

man with headache Proposed regulations for revising and greatly expanding the Department of Labor (DOL) Form 5500 reporting are set to take effect in 2019. Currently, the non-retirement plan reporting is limited to those employers that have more than 100 employees enrolled on their benefit plans, or those in a self-funded trust. The filings must be completed on the DOL EFAST2 system within 210 days following the end of the plan year.

Companies like Google®, L.L. Bean®, and Zappos.com® have the ability to spend hundreds of thousands of dollars on wellness programs for their employees. They can build state-of-the-art gym facilities, walking trails around the corporate campus, and offer any number of wellness services to benefit their workers, as well as monetary incentives. For the average employer and small business owners, this type of programming is nearly impossible. Small business owners may not have money to spend on these types of wellness programs, but they do recognize the value of investing in the health and wellbeing for their employees. These are shared strategies you can use to offer your employees opportunities to reduce health risks, control health care costs, and improve productivity and overall wellbeing.

Small business employees The Providing Affordable Coverage for Employees (PACE) Act amended the Patient Protection and Affordable Care Act (ACA) and redefined small employers as those with 50 or fewer employees; it also gives states the option to expand the definition to include employers with up to 100 employees (or, practically speaking, those with 51 to 100 employees, also called "mid-size employers"). Prior to the ACA, all states defined small employers as those with 1 to 50 or 2 to 50 employees; however, many have passed legislation redefining the group size up to 100 employees beginning in 2016. States are now in the process of determining what they define as "small employer."

CTA 2014 Benchmarking Survey By Carol Taylor, Employee Benefit Advisor
D&S Agency, a UBA Partner Firm

131723011 By Linda Rowings
Chief Compliance Officer, UBA

140052962 By Elizabeth Kay
Compliance and Retention Analyst
AEIS, a UBA Partner Firm

122493524 By Carol Taylor, Employee Benefit Advisor
D&S Agency, A UBA Partner Firm

178736463 A Summary of Benefits and Coverage (SBC) must contain:

6 Reasons Self-Funded Plans Are Gaining Popularity

Survey: Small Businesses Keeping Pace with Health Benefits Offered by Employers Nationwide

Ouch! Department of Labor Form 5500’s Time-Intensive and Expensive Reporting Requirements Painful for Small Employers

Cost Effective Wellness Strategies for Small Business Employers

CMS Provides Clarity on PACE Act Implications for States

The Story Behind Minimal Changes in Plan Designs and Premium Rates

Determining If Dental and Vision Plans Are “Excepted Benefits”

Navigating Narrow or Focused Provider Networks (Part 2)

Skinny Plans and Minimum Value: Do these plans really pass the test?

What to Include in an SBC