By sponsoring one’s own health plan, an employer can remove his group from the myriad of burdens placed upon high risk groups in the public marketplace. In this day and age, regulation of health plans is at an all time high; but through plan sponsorship, employers can remove themselves from taxing regulations, and often save thousands of dollars, preserving valuable benefits for employees while using strategic plan designs to protect from penalties under reform.
With BIC’s Self-Funded Exchange Marketplace, we support the employer’s ability to sponsor their own benefit plan through a self-funded plan, with all the protections in stop-loss and administrative support that an employer needs. Through comprehensive analysis, expertise, and planning, we first provide a solid recommendation regarding the choice between fully-insured plans and self-funded plans. Once we know whether self-funding is the best option for you, we can engage in some simple strategic planning to be sure your benefits meet your budget needs, and are those your employees need.
Don’t let a lack of information leave you wondering if you can find a better deal. With the Self-Funded Exchange, we’ll gather the required information, perform analysis, and make a recommendation that you can count on!
Among the benefits of self-funding, the following elements
highlight potential advantages that cannot be ignored:
Composite Rates: Simplify Defined Contribution
No PPACA Rebate Reporting: Keep the Claims Savings in the Plan
Standard Benefits Across State Lines: No need for multiple plans across state lines
Rates You Deserve: Earn better rates for deserving groups
Defining the Difference
Today’s health care system is riddled with complex plan designs and rigorous government regulations. States have not standardized their regulations to one sensible approach. However, in recent years Federal regulations have come to provide higher levels of consumer protection than ever before.
For an employer (or Plan Sponsor) to understand the difference between “fully insured” health plans and self-funded health plans, it is easier to first discuss the typical buying arrangement:
An employer, or plan sponsor, simply facilitates the purchase of a group contract that insures each of his employees directly. In essence, the insurance certificate contains an insuring clause or a promise to pay benefits. The insurance carrier makes this promise to each employee.
The Plan Sponsor simply facilitates the purchase of the group contract for purposes of benefit selection, rate guarantees, and premium collection.
These plans work a little differently. The employer, or Plan Sponsor, makes the promise to pay benefits to each employee, and then purchases administrative services (handling the money and the paperwork) and stop-loss insurance to protect the Plan from unexpected financial obligations of that promise.