Being afraid of self-funding is like being afraid of the dark – once you turn the lights on, you realize there was nothing to fear in the first place. Let’s look at the things that appear to be spooky about self-funded employee benefits and let’s turn on the light to show you the reality.
High Cost Claims
One of the top things that spook employers about self-funding is the possibility of incurring a high cost, catastrophic claim. The what-ifs and the implications can indeed be intimidating, but self-funded plans have built-in stop loss protection to limit the employer’s risk in the event of a high cost claim. By partnering with the right TPA and using stop loss coverage, the employer no longer has to fear the ominous high cost claim. They’ll be at peace knowing they’re prepared if it does come.
The Unknowns of Self-Funding
Because self-funding is a new concept to many employers, the unknowns can seem frightening. However, a self-funded plan can actually uncover more unknowns than a fully insured plan. After their first year of self-funding, employers have access to all their claim data, enabling them to fine tune their benefit plan for better plan usage and benefit ROI the next year. This access to data is not available with a fully insured plan, so you might find there are more unknowns with fully-insured plans than there are with self-insured ones! Employers who self-fund can relax because they know how their money is being spent and they have the information they need to make good financial decisions for their benefit plan.
Designing Your Own Plan
While designing your own plan is a major advantage of self-funding, doing it for the first time could be downright scary. Thankfully by working with BMA, employers take it easy while we do the heavy lifting of designing the plan, customizing a drug formulary, shopping for stop loss coverage, and researching the best provider network. Our knowledge of the law will also help the employer maintain compliance with the ACA, HIPAA, and other legislation. When partnering with BMA for benefit plan design, employers rest assured knowing they’re working with a knowledgeable partner who will optimize their benefit program for them.
Transitioning to Self-Funding
Employers can become overwhelmed about how to transition from a fully insured to a self-insured state. However, BMA offers several ways they can make this transition and the employer can choose the one they’re most comfortable with. Some start by self-funding dental and vision, others use a level-funding arrangement, and some go straight into a traditional self-funded plan. Whatever the route they choose, BMA walks employers step-by-step through the process, ensuring they feel secure and certain about their benefit plan transition.
Stepping out and pioneering a new cost-effective benefit strategy can be intimidating. However, by partnering with BMA TPA, employers will benefit from our 25 years of experience in innovating employee benefit plans for better ROI. When working with BMA, employers don’t have to be afraid of the future. Instead, they can walk confidently knowing they’re walking with an experienced TPA to help them grow and prosper.
Being in the dark is a scary thing; being alone in the dark is even spookier. When partnering with BMA for self-funded benefits, employers won’t be in either situation. Employers have a partner to take them by hand through the transition, establish protection from high cost drivers, provide transparency into their plan performance, and to optimize their plan for greater adoption and cost efficiency.
To shed more light on self-funding and to gain more confidence of how it can support your business, contact us.