EMPLOYEE BENEFITS
Take Back Control
Disrupting the Traditional Healthcare Plan Model Through Self-Funding
Healthcare shouldn't be a headache—it should be a lifeline. One in four adults skipped or postponed getting the healthcare they needed in the last 12 months due to cost.
For many employees, navigating their health plan is complex and expensive. And for employers, the cost of healthcare continues to accelerate. Employers are walking the fine line between providing comprehensive coverage and ensuring financial stability, and many are beginning to think differently about their plans.
In today’s dynamic insurance environment, it’s a great time to consider the benefits of shifting away from a traditional model.
What is Self-Funding?
Self-funding is an approach where an employer assumes the financial risk of providing healthcare benefits. Instead of purchasing a traditional health insurance plan from an insurance carrier, the employer directly funds the healthcare costs of its employees.
The critical thing to remember is that while employers assume more risk, they gain more control – and that autonomy is powerful.
The “Why” Behind Self-Funding
With more agency over your healthcare plan, you can design a program that meets your employees’ needs and maintains your commitment to fiscal responsibility.
Here’s How!
The “Why” Behind Self-Funding
With more agency over your healthcare plan, you can design a program that meets your employees’ needs and maintains your commitment to fiscal responsibility.
Here’s How!
1. Cost Control
Instead of paying fixed premiums to an insurance carrier, you only pay for the actual healthcare claims incurred by employees. This helps avoid the unpredictability of premium increases. By leveraging resources like Pharmacy Benefit Managers, integrated cost management solutions, and enhanced care coordination for employees, you can better manage your budget resources and create more robust pharmacy offerings.
2. Customization
You have the flexibility to design plans that align with your company culture and demographics, offering benefits valued by your employees without the unnecessary extras that drive up costs.
3. Transparency
You gain transparency into the healthcare claims data, enabling you to make informed decisions, implement targeted strategies to optimize healthcare spending, and improve employee health and well-being.
4. Risk Management
While self-funding involves assuming some level of risk, stop-loss insurance can help mitigate the financial impact of high-cost claims. Stop-loss coverage provides a safety net by reimbursing the company for claims that exceed predetermined thresholds, offering financial protection and security.
5. Cash Flow Benefits
Instead of paying premiums upfront, you retain control of your funds and only pay claims as they occur. This approach can help improve liquidity and provide additional resources for other strategic initiatives.
6. Long-Term Savings
Over time, self-funding has the potential to generate significant cost savings compared to traditional insurance plans. You can plan for future expenses and achieve sustainable savings by proactively managing healthcare costs and implementing initiatives to promote employee health and wellness.
Beat Rising Healthcare Costs
Self-Funding Empowers Your Employees and Your Organization
79% of U.S. employees are concerned or very concerned about the rising cost of healthcare. Those costs show no signs of slowing down, so it’s up to employers to lead the way in rethinking the traditional model of health insurance.
Rather than staying with a pre-set bundle of insurance options that don’t address your team’s needs (and costs your employees and organization more in the long run), self-funding allows you to design a plan around your employees and your financial goals.
Start the Conversation about Self-Funding
If you’re interested in learning about a strategic approach to self-funding, our team can help. We’re well-versed in the nuanced transition from traditional funding methods to self-funding, and we can discuss whether it’s the right move for your organization.
Reach out to me at andrew.gibbs@thinkccig.com to learn more.