Self-funded Insurance: Things To Consider

Self-funded healthcare plans have a number of benefits to small and medium-sized businesses. They allow for better customization of plans, they’re more affordable, and they give these smaller businesses a way to provide insurance coverage that they can afford. With a self-funded plan, employee premiums are paid into an account, which is then used to pay out claims as the year goes on. At the end of the year, anything extra left in that account doesn’t go back to an insurance provider but serves as extra profit for the business hosting the plan.

For smaller businesses, the potential for this little bit of extra at the end of the year can present a real opportunity for reinvestment into the business. Smaller and medium-sized businesses can use this rollover cash to grow bigger, stronger, and more innovative for the employees they serve. Businesses have a more secure future, and employees have a place they can grow right along with.

Ways Businesses May Wish To Reinvest

Reinvestment into your business doesn’t have to be big, flashy, or dramatic. Even small reinvestments can make a big impact down the road. A few ways businesses may wish to use their rollover self-funded healthcare plan funds to reinvest are:

  1. Marketing – If a smaller to medium-sized business really wants to get their name out there, attracting more clients and customers, it’s marketing they may wish to invest in. Local targeted marketing, digital marketing, and smart or innovative marketing are necessary for businesses to thrive in today’s modern world.
  1. Employee resources – Team building events, infrastructure improvements, continuing education programs, and technology are a few ways that businesses can take their rollover funds to reinvest right into their employees. Employees are a business’s most prized and valuable asset, and taking good care of them will ensure your business is taken care of in the long-run.
  1. Management investment – A well-managed business benefits every employee, and if you’ve never really invested in progressing your own management skills this may be the time to do just that. Management courses for all management employees will work to improve morale and workflow in the everyday workplace.
  1. Hiring more employees – With more employees, the pressure is taken off of the employees you have now. For smaller businesses, in particular, a single employee may need to take on the roles of several professionals, which stretches them thin and may lead to professional burnout. Hiring more employees is a way to reinvest in both growing your team and helping the team that you value now.

Boosting Business Of All Sizes

Self-funded healthcare plans present a number of opportunities, including the opportunity for businesses of any size to reinvest in growing and nurturing their own brands. If you’re interested in learning more about what self-funded healthcare coverage can do for you and your teams, contact us at National Insurance Partners to speak with one of our professional agents about self-funded care today.

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