Is self-funding always a good fit?
Self-funded plans are not for everyone. With self-funding, employers assume the risk of paying the health-care claim costs for its employees. Given limited cash flow, smaller companies may find that self-funding is not an option because they must remain flexible to meet the financial obligations, which are often unpredictable. To help mitigate this risk, businesses rely on stop-loss insurance. Stop-loss insurance reimburses employers for claims above a specific dollar amount.
It should be mentioned that there are plenty of smaller companies that function extremely well on a self-funded plan. To make the best decision for a specific business, it’s important to understand the health care goals of the company and the self-funded options available.
How does this shift perspective on employee health and wellness?
With self-funded plans, employee wellness is not something to be taken lightly. Encouraging healthy behaviors in employees is essential to any modern-day wellness solution and a healthy team will result in lower healthcare costs for the organization and the employees. This in turn will help companies attract top talent, improve job satisfaction, productivity, and retention.
Preventing health issues is less expensive and more effective than reacting to health care costs after the fact. Combine a robust wellness offering with an insurance plan that best suits the company and the and it’ll have a positive impact on the company’s bottom-line.