For businesses looking to provide healthcare benefits to their employees, there are two options to consider. Employers may choose a fully funded traditional plan or a self-funded health plan, and each comes with their own list of pros and cons. Self-funded plans are becoming more popular with many businesses big and small, as they offer something a little less traditional and more customizable than fully-insured healthcare plans.
With a self-funded healthcare plan, you’re not reliant on a healthcare provider to make payouts to your employees. Instead, your premiums are placed into a fund, and medical costs are taken from this fund whenever claims are made.
The premiums are determined by factoring in how many will be included in the plan, what their risks are, and how much coverage they’re likely to use. Any amount that is left over after the year is through will either be rolled over to the following year or serve as profit. These plans are often more affordable when compared to traditional fully-funded plans, allowing small or medium-sized businesses affordability in covering their employees.
4 Benefits Of Self-Funded Insurance Plans
There are a number of benefits associated with self-funded insurance plans, and the top 4 are the following:
Self-funded plans can be customized much more than traditional plans, so businesses can craft their policy to suit their industry or their team. Independent small to medium-sized businesses may not have the same needs as their larger counterparts.
Employer Retains Overhead Funds
During years when the plan doesn’t fill as many claims as expected, anything leftover remains as overhead. This means that if not all of your set-aside premiums are used, you as the employer get to retain those funds and use them as you see fit the following year.
Self-funded healthcare plans allow smaller businesses to remain ACA-compliant even if they were unable to afford traditional healthcare plans before. This keeps smaller businesses legal and their employees happy with the coverage they have.
Identify Trends For Cost Savings
With a traditional fully funded plan, you may not have access to data with the potential to save you money. With self-funded plans, you have better access to usage data, which can let you identify important trends and figure out where funds can be saved. With greater control over your plan customization, you know just what you need and how you can craft your plan accordingly.
Self-Funded Insurance Plans For Any Need
Self-funded insurance plans are an option for any business owner looking for an individualized way to cover their employees. With greater customization and money-saving capabilities, your healthcare insurance plan is one that always works for you.
If you’re interested in seeing how a self-funded plan can help you and your employees, your next step should be speaking to a professional agent. Visit http://www.iisbenefits.net to see what self-funded options we can offer you today.