Alternatives to Funding Your Health Insurance 

We help our client's to decide if their Health Insurance should be Insured, Self-Funded or Minimum Premium Funded. 

Criteria in Deciding Whether to Self-Insure:

• Is the group large enough to spread the risk and have a credible experience?
• The level of risk a client is willing to take
• Can the client cope with fluctuations in claim payments

Under a minimum Premium plan, the insurance company estimates cost of claims plus administration expenses and profit.  The employer pays the insurance company an amount to cover claims, up to the amount estimated by the insurance company.  If annual claims exceed an insurance company's estimate, the company is responsible for all claims incurred above its estimate. 

Self-Funded can use a stop-loss arrangement to minimizes their risk. Employers with 10,000 plus employees generally do not use stop-loss coverage. At this group size the volume and frequency of claims generally are predictable.  

Administrated Alternatives

1. Employer Self Administration
2. Administrative Services Only Contract - The insurance company administers the plan (no financial risk is assumed by the insurance company).
3. Third Party Administrators - Outside firms offering computerized claims payments and database services.

Major cost advantages to moving to self-insured plan:

1. No state premium tax
2. No insurance company margin or risk charges
3. State-mandates benefits do not have to be meet