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Self-funding The Cure For Regulatory Overload

10/29/13

  05:18:19 pm, by MedBen5   , 321 words,  
Categories: News, Health Care Reform

Self-funding The Cure For Regulatory Overload

White House

“If you like your health plan, you will be able to keep your health plan.”

So President Obama promised Americans in 2009, a year prior to the passage of the Affordable Care Act. And it’s an assurance he has made repeated times since then.

But as NBC reports, the Obama administration has been aware for some time that the majority of people with individual health insurance would likely lose their current coverage. Because most policies supposedly protected under the law’s “grandfathering” rules have changed their design since 2010, they no longer meet the mimimum benefit requirements under the law.

As far back as July 2010, health care reform regulations noted that “40 to 67 percent” of customers – or even more – would not be able to keep their policy. For individuals, it means buying new plans with mandated benefits they may not want or need, and at significantly higher premiums (though the administration is quick to point out that subsidies may cover some of the difference).

Nor are fully-insured employer plans immune. The same mandatory benefit additions that have caused costs on individual insurance to spike will similarly affect group coverage. Plus, the requirement necessitates that insurers reduce their coverage options, resulting in less plan flexibiity.

Fortunately, MedBen has a simple answer for employers: Self-funded coverage.

By having greater freedom from state and federal regulations, self-funded groups avoid some of the mandates that artifically inflate health care costs. Plus you maintain the flexibility that allows you to design a plan that works best for your employees

Best of all, self-funding benefits your bottom line, because you keep any money that doesn’t go toward paying claims. And with MedBen variety of self-funding solutions, even groups with as few as 25 employees can enjoy the savings advantages.

To see how self-funding with MedBen can help your group avoid the regulatory traps and save you money, contact Vice President of Sales & Marketing Brian Fargus at bfargus@medben.com.

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