Employers Advantage

Self funding is not a new concept to the health insurance industry; in fact thousands of employers across the country have used this approach for providing quality health coverage for the employees for more than 30 years.

In recent years, employer groups have been re-visiting the concept of self-funded health plans to combat escalating premiums, eliminating mandated benefits and their associated costs, offer more competitive & flexible benefits to all their employees and improve overall cash flow.

With all of these positive features, why haven't more employers implemented self-funded health plans? The three primary reasons are lack of financial performance data from the current health plan, the concern of having to manage too many vendor relationships and the impact on internal staffing. The selection and implementation process can be overwhelming to the average Human Resource Manager or Broker as it requires the evaluation and selection a Third Party Administrator, Pharmacy Benefit Manager, Utilization Review and Case Management Company, Preferred Provider Organization, and reinsurance.