For many businesses, switching from a fully insured health plan to a self-funded one can seem daunting. However, the benefits can be significant. Self-funding offers cost control, flexibility, and even the ability to match or improve your current plan design. Here’s a simple guide to help you through the transition.
1. Understand Your Current Plan Design
Before switching, review your current fully insured plan. The good news? With self-funding, we can match your existing plan design exactly, so your employees won’t experience any disruptions. The only change they’ll notice is an improvement in their benefits!
2. Evaluate Your Claims Data
Claims data is key to determining whether self-funding is a viable option. Work with your broker to assess your company’s historical claims and overall health care usage. This data will help design a self-funded plan that’s tailored to your specific needs.
3. Customize Your Self-Funded Plan
One of the greatest advantages of self-funding is flexibility. You’re not limited to off-the-shelf plans. You can build a plan that not only matches your current offering but also improves it. For example, by choosing to go self-funded, you can offer employees free prescriptions and free imaging services, giving them enhanced benefits without increasing your costs.
4. Partner with a TPA (Third-Party Administrator)
A TPA will manage the day-to-day operations of your self-funded plan, handling claims, payments, and provider networks. A strong TPA partner ensures your plan runs smoothly and that employees have a seamless experience.
5. Establish Stop-Loss Insurance
While self-funding allows you to pay for employee health claims directly, it’s important to protect your business from high-cost claims. Stop-loss insurance limits your financial risk and provides peace of mind, ensuring that you’re not over-exposed to unpredictable, large claims.
6. Educate Your Employees
A smooth transition means keeping your workforce informed. Educate your employees on the changes, emphasizing that they will experience no disruption in care, and will gain access to enhanced benefits like free prescriptions and imaging.
Transitioning from fully insured to self-funded doesn’t have to be complicated. By matching your current plan design and improving benefits, like offering free prescriptions and imaging, you can save costs while improving employee satisfaction. With the right strategy and partners in place, the switch can be seamless and highly rewarding for your company.
C. B. Wood Financial Can Make This Transition Simple for You!
Follow the button below to get started.
Comentários