FREQUENTLY ASKED QUESTIONS ON SELF-FUNDED PLANS

What is a fully insured health plan?
What is a self-funded health plan?
Why do employers self fund their health plans?
With what laws must the self-funded plan comply?
Is self-funding for everybody?
What is excess-risk (or Stop-Loss) coverage?
Do I have to redesign my existing health plan?
What about payroll deductions?
Will my life insurance coverages be affected by self-funding my health plan?
Who will take the place of the insurance company to administer the plan?
What are the advantages in using a TPA?
Do TPAs do as good a job, or a better job, than insurance companies??
Why should I self-fund my health plan?

Why should I self-fund my health plan?

Many employers faced with the same question have decided to implement a self-funded health plan. Their reasons include:

• Self-funding will show a large first-year savings through the lack of premium taxes and various insurance company charges.
• Employers can save considerable money through new plan designs that take advantage of the most up-to-date cost containment strategies.
• Self-funding doesn't affect the plan from the employees' standpoint. There doesn't have to be any noticeable change in the plan unless the employer so wishes.
• The employer receives increased interest from his reserves.
• Every aspect of plan administration becomes subject to competitive market pricing, thereby saving money on such items as claims administration, printing of Summary Plan Descriptions, etc.
• Excess-risk coverage is available to insure the employer against unforeseen adverse claims experience.

Contact us for more information on how to self-fund your health plan.

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