INSURANCE PLAN FOR YOUR BUSINESS
5 Reasons Why You Should Consider This Insurance Plan for Your Business
Healthcare Reform has been changing the landscape of healthcare in the nation. People are actively looking for new insurance plans and solutions to the high cost of healthcare. For small businesses, only a very limited number of suitable insurance plans are available. While coverage may be easy to get, it is also becoming increasingly expensive. This is a downside to the guaranteed issue where no exclusions exist for pre-existing conditions.
Employers trying to grapple with the costs have looked to wellness plans for assistance. However, in an arena where rates are guaranteed, individual employers and groups see no effect on their rates by applying these programs. So, what can employers do to help defray their costs?
Implement a Self-Insured Plan
One way to enact changes that have an impact on a company’s healthcare costs is to implement a self-insured plan. Initially, self-insured plans were used for the large employer market. However, now these plans can be employed for groups of only 20 employees, and in some cases, even less. Although self-insured plans offer numerous benefits, here are five reasons that they are advantageous for employers.
Transparency in Your Healthcare Dollars
Transparency means you’ll never have to wonder what part of your premium goes to certain aspects of the plan, such as prescription coverage or fixed costs within the insurance company. You don’t get transparency with a fully-insured plan. A self-insured plan offers you access to that data. You will have full knowledge of how many dollars go to every aspect of your healthcare plan. From Tele Doc to Rx, to broker fees and claims auditing, it is all right there for you to see.
Most fully-insured plans audit only about 20-30% of their claims. The remainder simply passes through for automatic payment. The administrator of a self-insured plan typically reviews 70-80% of the claims and only passes 20-30% through for payment automatically. Since errors happen frequently, your administrator can catch them during the audit process and save you money.
No Healthcare Reform Taxes, Fees, and Compliance
A company can exempt from Healthcare Reform requirements through self-insurance. Once you are self-insured, you can save money on these matters.
No Profit Margin and Risk Adjustment for the Insurance Company
Since your plan is not run through an insurance company, you save on this upfront.
Money-Back at the End of the Year
Most self-insured plans must pay a set premium to their administrator each month. If at year-end, you had a low claims year and there is money remains in your account—it is yours. You can choose to take this out or leave it, carrying it forward for savings the following year.