Self Funded Plans

There are many reasons why some form of self-funding is used by more than two thirds of U.S. employers. Here are just a few:

• Increased Financial Control - In a self-funded plan, funds can be contributed to an employer-established account and transferred only when needed to pay claims and expenses.

• Lower Costs - In most states, premium taxes, which usually range from 2% to 6% of costs, do not apply to self-funded claims funds. Insurance company profits, risk charges and many costly state-mandated benefits are also avoided.

• Flexibility - With added pressures and a growing desire to meet the changing needs of employees, self-funding allows employers to design a health benefit plan to address specific conditions as well as company objectives.

• Costs Management - Self-funded plan designs can include strategies to monitor utilization, audit claims, implement and verify all discounted provider arrangements and assure appropriateness of care.

• Information Management - In addition, self-funding provides easy, secure access to all the information needed to manage a plan effectively. Management receives confidential claim and funding reports each month; everyone involved, employer, member, provider and agent receives secure online access to important benefit-related information.