Self Funded Insurance vs. Traditional Carriers

22 Mar

With full blown Obama Care here in less then 8 months many employers are starting to look at ‘carriers’ that offer self-funding as an option in the game of health insurance.

These companies over a viable and better cost effective options over traditional carriers. Self Funding allows the employer have more ‘skin in the game’ as far as the model, gap coverage needs, deductible, and overall say on how the process works in conjunction with the ‘carrier’.

The ‘carrier’ or administrators do a better job of watch dogging providers, processing claims, and pretty much everything else allowing for lower overall costs associated with the insurance coverage for the employer.

The average savings per employee in 2012 when you compare self-funding models vs. traditional carrier models was about 37%  ($9100 per EE vs. $12600 per EE).

I would think about a self-funded/partial self-funded model with your broker as it makes sense.

 

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