Is Self Funding right for you?

Do you believe that your company understands all the pros and cons of Self-Funding?

Most private companies choose to self-fund their employee’s Health Benefit Plan, and this trend is increasing.  ARC and their Affiliates at no cost will discuss the pros and cons of Self-Funding and will develop a strategy for your Health Benefit Plan that ensures compliance, transparency, portability, satisfaction.

Self-funding creates financial and operational efficiencies that inure to both the employee and employer.

Becoming self-funded requires a long-term commitment.  Like any such major decision, we strongly advise you to first gain a sound understanding of its advantages and disadvantages.  You should know, for example, that self-funding migrates the risk of providing healthcare coverage from an external insurer back to the employer.

ARC will not just talk you through the pros and cons of self-funding.  ARC will also, at no cost, provide you a fully ERISA compliant self-funded Plan proposal customized to your unique situation

 

Self-funding is an effective method for taking control of health care expenditures and creating financial & operational efficiencies that inure to the benefit of both the employer and its employees. These benefits require a long-term commitment, which, like any long-term fiscal decision, requires a sound understanding of both the advantages and potential disadvantages of self-funding. ARC, at no cost will design a Benefit Plan Proposal that will be ERISA compliant immediately!

 

The Pro’s and Con’s of Self Funding 

Advantages “Pros” Disadvantages “Cons”
  • Overall Control
    Complete flexibility of plan design, funding & reserve margins
  • Monetary
    Money previously held in the form of reserves, incurred claims & reserve/claims profit margin is held in your accounts and earns interest for you
  • Reduction of Premium Tax
    Self-funded plans are not subject to the premium taxes fully-insured plans pay
  • Elimination of State Mandated Benefits
    State mandates are not enforced as plan is governed solely by ERISA
  • Administrative Efficiencies
    By utilizing a Third Party Administrator eligibility, billing, claims payment & claims resolution is streamlined through one location. Client satisfaction is increased and plan performance is maximized
  • Reduced Operating Costs
    Administrative fees incurred by TPAs are often lower than in fully-insured arrangements
  • Reporting
    Accurate, detailed claims utilization reporting & analysis is available to self-funded plans that is not readily available to their fully-insured counterparts
  • Cost and Utilization Controls
    The plan dictates how much or little medical management to incur within the plan
  • Financial Risk
    While current Reinsurance contracts create minimal risk overlap,
  • Increased Employer Education
    A successful self-funded plan requires Management buy-in in the form of health care education. Medical trends, claims analysis & employee communication is critical to ensuring the maximum benefit from self-funding
  • Decreasing Population
    If an employer incurs a large downward swing in enrollment, the concurrent claims lag, decreased premium and census change can cause cash flow issues as well as jeopardize Reinsurance contracts.
  • Return to Fully-Insured
    In the period a plan sponsor returns to fully-insured, it is responsible to fund both run-out claims as well as fully-insured premium. This can cause a double-expense effect in the first few months of the new plan.

ARC and their Affiliates differentiates itself through full transparency as well as competitive pricing. ARC’s motto is “Transparency Ensures Compliance”. Although we emphasize compliance, ARC and their Affiliates firmly believes transparency is the right foundation for building trust as well as providing superior customer service.

For a complimentary cost analysis and plan design proposal please “Register” or email us at admin@arcrecovery.com

We will have a specialist contact you immediately