Employer-sponsored healthcare costs are increasing at an unprecedented rate. In 2020 alone, forward health insurance costs for businesses increased by 4% and those costs are only going to increase in 2021. This has lead Businesses to look for alternative ways to provide health care for their employees. One of the most popular is with a self-funded healthcare plan. self-funded health care plans relatively new to the insurance market, but have been saving employers and employees millions in healthcare expenses. To help your business understand more about self-funded health care, here are the answers to the most frequently asked questions (FAQs).
- Does My Business Qualify For Self-Funded Healthcare?
All businesses across all industries qualify for self-funded health insurance. However, in general it is best If an employer organization is small or mid-sized. Companies that are larger will have a much larger risk pool. Thus stuff self-funded healthcare may cost more for them than standard health insurance policies. While on the other hand smaller and medium-sized businesses have less of a risk pool and less healthcare costs, so it can save a lot of money every year.
- What Health Benefits Are Offered With Self-Funded Insurance?
Self-funded insurance covers the same standard benefits of other health insurance policies. This includes medical care, pharmaceuticals, dental, vision, and disability. With self-funded healthcare, your employees will still see the same physicians and care providers they are currently seeing. However, unlike standard employer-sponsored health insurance plans, your employees will not be limited to in network and approved doctors. They will be able to choose what health care provider they see. This flexibility is one of the biggest benefits of offering self-funded health care plans to your staff.
- What If My Staff Has A Large Claim?
One of the biggest concerns with self-funded healthcare is the risk incurred from a large claim. However, this risk can be offset by purchasing stop loss insurance. Stop-loss insurance, also known as “excess insurance,” is designed specifically for catastrophic claims. This will go into effect when your employees need to file a large claim that is beyond your means to cover.
- What Happens If I Need Support?
When you choose to provide self-funded Insurance, you will still work with an agent like you do with a traditional policy. When issues come up, you will have support from that agent. They will be able to answer questions, offer advice, and help you make informed decisions about your self-funded health insurance policy.
At National Insurance Partners Inc., our team is dedicated to helping businesses find affordable health care options for their employees. We offer a range of solutions including self-funded Health Care, to ensure that you can provide quality healthcare to your staff at a price you both can afford. To learn more about self-funded healthcare, visit our website at National Insurance Partners. then give us a call and we’ll be happy to answer any questions and provide any guidance on selecting a policy that is right for your business.