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Conditions Are Right To Make The Self-funding Switch

09/13/13

  09:07:42 am, by MedBen5   , 262 words,  
Categories: News, Health Plan Management, Health Care Reform

Conditions Are Right To Make The Self-funding Switch

At MedBen, we believe that employers both large and small should benefit from the savings achieved by a healthy workforce. That’s why for two decades we’ve offered self-funded solutions for large and smaller employers.

Still, for companies that rely on the stability and security of fully-insured coverage, the prospect of “going it alone” may seem daunting. So what reason would a smaller employer have for risking the status quo? As it turns out, there are several.

Employee Benefit Adviser lays out the rationale as to why an increasing number of groups are exploring the advantages of self-funding:

  • A modified community rating under the Affordable Care Act will mean that any financial advantages small employers received with full-insured coverage will soon be eliminated. That will result in higher premiums regardless of how healthy a workforce may be.
  • As the number of mandated benefits grows and costs rise for companies with a healthy workforce, traditional insurers will streamline the number of coverage variations it offers, resulting in less plan flexibility for employers.
  • Under the guaranteed issue rule, a small business with less than 50 employees that decides self-funding no longer meets their needs can return to a fully-insured product without incurring a financial penalty.

If you work hard to contain your health care costs, now really is the perfect time to self-fund safely through MedBen. You can share in the savings that come from reduced employee claims and cut your premium costs dramatically.

To learn more about the benefits of self-funding, contact MedBen Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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