Potential Savings, More Reporting
Moving from a fully insured employee health plan to self-funding (or self-insuring) employees’ health benefits offers potential savings for some employers; however, it also triggers increased compliance requirements. Your clients may want to consider how any switch will affect:
- Budgeting for employee benefits
- Employee contributions for coverage
- COBRA premiums
- Potential purchase of stop-loss protection
- Selecting a benefits administrator to pay claims
- Whether claims are paid from segregated or general assets – or whether to set up a trust to pay claims
- Accounting and auditing
- Employer ACA-related reporting
- ERISA compliance
- HIPAA privacy and security
- Added plan disclosures and documents
Self-funding can stabilize or reduce your clients’ costs, because they are not subject to a carrier’s Medical Loss Ratio (MLR) guidelines or profit goals.
LEVEL FUNDING ADVANTAGES
Level Funding is a cost-effective long-term solution to fund high-quality PPO plans, giving employers full control over their benefit design and coverage.
Minimizing Employer Risk
If your clients self-fund employee benefits, they can protect themselves from catastrophic claims with Specific Stop Loss or Aggregate Stop Loss coverage.