USBenefits believes in the importance of self-funding. We’ve built our reputation around this belief, and we strive to support our self-funded partners and their financial goals. According to the Kaiser Family Foundation’s 2020 Employer Health Benefits Survey, 67% of covered workers are in a plan that is self-funded, an increase from the 61% of the previous year. More employers are moving to self-funding to help control employee medical cost and outcome. This is no shock, as there are many tremendous benefits to selecting self-funding:
As no two people have the same medical conditions or history, health insurance plans should not be one-size-fits-all. With self-funded coverage, employers have more flexibility in customizing plan designs compared to traditional fully insured coverage. This gives employers the power to offer benefits that meet the needs of their employees.
Traditional health plans are subject to satisfying state insurance laws and mandates. For employers with employees in multiple states, this can quickly complicate choosing the right coverage. Choosing to self-fund removes many of those requirements, allowing the employer to offer their employees a specific plan designed for the employees and cost savings for the employer.
Self-funded plans allow an employer to better balance risk and reward, while also protecting the employer under the Employee Retirement Income Security Act (ERISA). Self-funded health plans allow the employer to control their own financial risk instead of paying an insurance company the standardized premium. While traditional health plans require a monthly premium be paid to the insurance carrier, self-funded plans do not. Instead, employers hold on to the money until it’s needed to pay out claims. Self-funded plans also eliminate the need for employers to pay a state premium tax as well as overhead and fees to an insurance company.
While most medical claims can be routine, it is wise to prepare for a catastrophic event. Employers should have a safeguard in place to protect themselves from large claims that could be detrimental to their business. This is where Stop Loss Insurance comes in and works with employers on these unexpected claims – providing Specific coverage for the individual employee beyond the employer risk and Aggregate coverage to cover all employee’s aggregating medical claims. USBenefits has the experience, reputation, stability, and longevity to partner with you to help in that risk.