Employers spend over $10,000 per employee per year on healthcare. These costs are expected to increase roughly 4 to 5 percent over every year.
Skyline Benefit offers self-insurance solutions for the rising cost of healthcare by educating and assisting employers with self-funding insurance. Since the passing of the Affordable Care Act, employers have shown greater interest in this type of healthcare coverage.
What is self-funding insurance? Self-funding is a financial arrangement in which an employer funds health care claims independently rather than utilizing an insurance company to purchase health coverage for its eligible employees. Due to both rising costs and increased instability in the healthcare marketplace, self-funded plans have become the most common type of health plan for employers to provide quality health benefits to their employees and dependents.
Self-funded plans can be a great option for many employers for the following reasons:
You are in Control
With self-funding insurance, employers can customize the benefit plan to meet the specific healthcare needs of its workforce, as opposed to purchasing a one-size-fits-all insurance policy by a carrier.
Emphasis on Wellness
Employers can implement programs that examine health risks and promote wellness among employees. Disease management experts can help craft risk assessment and prevention models to improve productivity and overall health of employees.
More Bang for Your Buck
Employers maintain direct control over the health plan cost. They do not have to pre-pay for coverage, thereby providing improved cash flow and maximizing interest income. Also, employers are not subject to insurance premium taxes, which are generally 2 to 3 percent of the premium.
Although self-funded plans present many advantages, employers should consult with self-funding specialists. The employer’s financial condition, cash flow, risk tolerance, and desire for flexibility in creating their health plans are some of the factors that should be carefully evaluated when converting from a fully insured plan to a self-funded arrangement.