Are these myths keeping you from self-insuring?
Just because your group plan has always been fully-insured doesn’t mean this is still the best strategy for your organization. While self-funding has traditionally been reserved for large groups, new solutions are available that make it possible for groups with even 20 employees to self-fund.
First, what is self-funding, or self-insuring?
The major difference between self-insured and fully-insured plans are in regards to who operates the plan, and who pays the claims. With self-funded insurance, the employer operates the plan and pays the claims. With fully-funded insurance, the insurance company operates the plan and pays the claims.
The big benefit of self-insurance is the savings potential. Because employers pay the claims, they reap the benefit of low-claim years. Additionally there are also blended options, where employers can take on less risk and still benefit in low-claim years while minimizing risk in high-claim years.
But many small employers remain wary. Are these self-insurance myths keeping you from considering alternate funding methods?
These ideas commonly keep small employers from considering self-insured health plans, but they aren’t the roadblocks many employers think they are.