Why More And More Businesses Are Switching To Self-Funded Healthcare

Over the last few decades, the cost of healthcare has exploded. This trend is likely to continue into the near future. In fact, it is predicted that healthcare costs will increase by 5.8% in 2021. These excess costs can be a significant burden on businesses. So many employers are looking for alternative solutions to funding healthcare. One solution that is gaining a lot of popularity among businesses is self-funded healthcare.

What Is Self-Funded Healthcare?

Self-funded healthcare is a program designed for businesses to help reduce the costs of employer-sponsored healthcare. It is different from standard employer-sponsored healthcare programs. Rather than buying a policy and paying a monthly premium, self-funded healthcare establishes a trust that can be used to pay for employee healthcare costs as they appear. If at the end of the year, the fund is not spent, the business gets to keep the rest of the money to reinvest in their business. This model can save employers a lot of money.

How Does Self-Funded Healthcare Work?

Self-funded healthcare plans are pretty straight forward. You will set up a fund that you will earmark for costs. Then you will purchase a stop-loss insurance plan to help cover any very costly expenses like surgery. Then your employees will seek healthcare as needed and instead of going through all the insurance paperwork, you will just cover the out-of-pocket expenses from your earmarked fund. These expenses are often discounted and cost less than insurance claims, so there are many layers of cost savings.

What Are The Benefits Of Self-Funded Healthcare

There are several benefits of self-funded healthcare including:

These are just some of the benefits of self-funded healthcare.

How Do I Get A Self-Funded Healthcare Plan For My Business?

The best way to get a self-funded healthcare plan for your business is to speak to the representatives at National Insurance Partners Inc. We’ll help you determine what kind of plan is needed for your unique business and will handle all the administrative processes. If you’d like to learn more visit us at National Insurance Partners to answer any questions. Rather than paying too much for standard healthcare, consider your options. Self-funding can save a lot of money and provide a higher quality of care for your staff.

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