Advantages to Self-Funding Your Benefit Plan:
- Create a tailor made benefit plan to fit you and your employee’s specific needs and achieve the desired results.
- Save money with reduced administration costs.
- Improve your cash flow by controlling where and how contributions are distributed and freeing up reserves otherwise held by insurance carriers.
- Manage the amount of risk you retain, and the amount assigned to a stop loss carrier.
- Eliminate carrier profit margins that are built into fully insured premiums.
- Eliminate premium tax, generating immediate savings, as provided by the tax law for self-funded plans in most states.
- Control claim costs by accessing a matrix of programs proven to produce savings and efficiency.
- Manage utilization and cost with your ability to choose from unlimited service vendors and eliminating the required use of insurance carrier’s in-house programs. This includes vendors who facilitate large case management, second opinion, outpatient surgical, PPO, and Rx management programs, among others.
- Avoid costly, mandated benefits required by state regulations since self-funded plans are subject to ERISA.