As employers, we all face the same nagging dilemma year after year – how to rein in ever-increasing healthcare costs without compromising the quality of benefits for our employees. With annual premium increases from carriers routinely in the double-digits, it can feel like an intractable problem. But there is a solution that puts you back in control of this runaway expense.
Renting vs. Owning Your Health Plan
If your company offers a traditional, fully insured health plan, you rent it from an insurance carrier. You pay a premium, and they own the plan and make all the decisions about plan design, networks, and pricing. It’s convenient but leaves you at their mercy regarding cost management.
The alternative is to self-fund your health plan, which means your company owns it rather than renting it. This unlocks a whole new level of cost control. When you own the plan, you get to call the shots on plan designs, provider networks, and how your healthcare dollars are spent to maximize value.
The Self-Funding Advantage
With self-funding, you only pay for the healthcare costs your employees incur each year. In low claim years, your company pockets the savings instead of an insurance carrier. And while you take on more risk in higher claim years, you also have the rare opportunity to earn a return on your healthcare investment – impossible with a rented, fully insured approach.
Beyond cost control, self-funding gives you access to data-driven insights to identify and manage cost drivers like never before. You can implement targeted cost management strategies, customized clinical programs, tailored provider networks, and more to optimize your healthcare spending.
Taking the First Step
Admittedly, taking on a self-funded health plan is not a trivial decision. It depends on your company’s cash flow, risk tolerance, employee demographics, etc. That is why at DSG Benefits Group, our first step is helping employers analyze whether self-funding suits their unique situation.
We will provide financial projections, pricing scenarios, and objective guidance on plan design strategies to ensure you make the right call. If self-funding makes sense, we will help you build and implement the optimal self-funded strategy. We will ensure you have the best-in-market, fully-insured solution if needed.
The opportunity to finally take control of one of your company’s most significant expenses is powerful. If you are tired of being a passive price-taker, schedule a free consultation below to explore unlocking better healthcare cost control through self-funding.
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