As a decision-maker in charge of your company’s health insurance, you’ve probably heard the same story year after year: “Your options are limited.” If you’re running a business with fewer than 100 employees, you might think you’re stuck with traditional fully-insured plans.
You assume you can’t afford better coverage.
You assume that size matters and you’re too small for other options.
These assumptions have been holding businesses back from innovative benefits solutions that could reshape their approach to employee health coverage!
Let’s bust a common MYTH: partially self-insured health plans are too risky for small companies.
The truth is, with the right benefits consultant by your side, partially self-insured plans can be a viable and advantageous option for businesses of all sizes.
What is a Partially Self-Insured Health Plan?
A partially self-insured health plan is a type of health insurance where the employer assumes some of the financial risk for providing health care benefits to its employees. Instead of paying a fixed premium to an insurance company, the employer pays for actual health care claims incurred by employees, up to a certain limit. This approach is usually combined with a stop-loss insurance policy that protects the employer from catastrophic claims.
Here’s what you need to know:
- Tailored Protection: A skilled advisor will outline your potential exposure and implement safeguards to minimize both monthly and annual risks. You’re not jumping into the deep end without a life jacket – you’re taking a calculated step with proper safety measures in place.
- Customization is Key: Traditional plans often force you into a one-size-fits-all approach. Partially self-funded plans offer flexibility that fully-insured options can’t match. You can design a program that truly fits your company’s unique needs and budget and allows you to tailor benefits to your workforce’s specific needs. This could mean better coverage in areas your employees value most, increasing satisfaction and retention.
- Potential Cost Savings: Partially self-insured plans can offer more control over healthcare spending. You pay for actual claims rather than inflated premiums, potentially leading to significant savings when claims are less than expected. It’s an opportunity to turn your health plan from a pure expense into a manageable investment.
- Data-Driven Decisions: Fully insured plans provide limited claims data. With a partially self-insured plan, you gain access to detailed information about your employees’ healthcare usage. This data can help you make informed decisions about wellness programs, plan design, and cost management strategies.
As we move into the second half of 2024, now is the perfect time to start planning for your next plan year. Don’t wait for your renewal to land on your desk. By starting early, you give yourself ample time to:
mag Thoroughly explore all available options
pencil Analyze the potential impact on your business and employees
mega Educate your team about any potential changes
bulb Implement a communication strategy to ensure smooth transitions
This year, challenge your current broker. Ask them to present ALL available options, including partially self-insured plans. The idea that partially self-insured plans are only for large corporations is outdated. Small and medium-sized businesses can now access these plans, reaping significant benefits.
Remember, your goal is to put together the best possible program for both your company and your employees.
Don’t let outdated misconceptions limit your choices. By broadening your horizons, you might find a solution that offers better coverage, more flexibility, and cost savings.
Health insurance is constantly evolving, and so should your approach to employee benefits. Stay informed, ask questions, and don’t be afraid to explore new territory. Your employees – and your bottom line – will thank you for it.