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Avoid The Fully-insured Customer Battles By Switching To Self-funding

10/11/13

  10:27:45 am, by MedBen5   , 318 words,  
Categories: News, Health Plan Management, Health Care Reform

Avoid The Fully-insured Customer Battles By Switching To Self-funding

Health Insurers Scramble to Keep Healthy Customers“, says a recent Wall Street Journal headline:

“Several [health insurers…] have recently warned customers of big rate hikes if they don’t immeditely renew their policies.

“At issue is a battle for healthy policyholders. Each company wants as many healthy people as possible on its books in hopes that their premiums will help offset an increase in costs from an expected wave of new customers who – with the help of the new health law – will be gaining insurance for the first time and may have health conditions to address.”

The article details the tactics that several high-profile insurers have used in retaining clients. One sample correspondence instructed customers to renew their current plans within 30 days of receiving the letter, or get switched to a pricer policy. A mandatory notice regarding optional plans available on state-run marketplaces was relegated to a footnote.

At MedBen, we view this “scramble” for healthy clients from a different perspective: If your claims activity is so good that you’ve got insurers AND the government competing for your business, then the truth is you have probably outgrown your fully-insured health care plan. Instead, you should consider the advantages of self-funding.

Employers with as few as 25 employees will save money as a self-funded group. Your money stays with you until claims are paid, so you can continue to earn interest on it. Plus, you keep what you don’t spend!

With MedBen as your plan administrator, we will see to it that you get the maximum value for your money. You’ll also get services not available from many other health care benefits managers, such as advanced claims surveillance to find additional savings and interactive reporting to spot spending trends.

For more reasons why it’s time for your business to explore the switch to self-funding, contact MedBen Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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