Self-Funding: Worth the plunge?
Understanding the Risk and Rewards of Self-funding
To make the decision to switch over to self-funding, you need to understand the basics so that you can then seek out more specific answers for your company in order to determine whether or not it is worth you making the switch.
We have broke down self-funding in everyday terms so that you can make the first decision for yourself:
Do I need to get more information about this powerful money saving tool for my company from BMA?
First off, Self-funding is when an employer sets aside appropriate funds to pay an employee’s medical expenses. The workers contribute to the plan instead of paying traditional premiums that we have been accustomed to for years.
Employers are able to control what they cover based off what their workforce tends to need with their healthcare. They can also determine which provider networks works best for them.
When it come to cash flow, the employer’s money is not gone never to be seen again like a premium usually would be. It is available for when it needs to be used.
As a major perk these days, employees of self-funded companies generally have lower single and family premiums than those with fully funded insurance.