Today’s group health insurance costs represent the largest expense that most companies face, second to payroll.
These costs have doubled in 10 years and show no signs of slowing. The upward trend is quickly becoming unsustainable and, for many, is seen as an obstacle to company growth.
With most fully insured group benefits plans, employers don’t have much control over plan design, nor do they have insight into their claims data, making cost management – or even cost containment – a challenge. The need to proactively and strategically manage health plans as part of a broader risk management program has become a top priority.
Self-funded plans offer employers a potentially cost-saving alternative. With the ability to analyze claims data that this option provides, employers can make adjustments to plan design and eliminate inefficiencies, giving them more control over the numbers. Greater plan and data transparency enables forecasting, modeling and opportunities for customization, so employers can get a long-term view of their program.
If you’re an employer with 100+ employees, it may make sense to take a closer look at how self-funding your group health plan could contribute to a healthier bottom line. Read more about self-funded group plans by downloading our whitepaper.
M&T Insurance Agency, Inc Risk Management Spotlight – Self Funded Group Plans (PDF)