An alternative way to offer coverage to your employees.
Health insurance costs continue to be a key area of concern for many businesses. But if you have more than 25 employees enrolled in your current health insurance plan, there is an alternative you may want to consider: a self-funded health insurance plan. This plan will not only help you manage costs, but you can also customize the benefits you offer employees. Let’s take a look at some of the key advantages of a self-funded health insurance plan for your business.
A self-funded or self-insured insurance plan is when you (the employer) assume the financial risk of providing health insurance to your employees. You pay for claims out-of-pocket, instead of paying an insurance company pre-determined premiums. Here’s a side-by-side look at how self-funded and fully-insured plans differ:
For years, it was thought that self-funded plans were only right for large companies that had hundreds (if not thousands) of employees who needed health insurance. In reality, a company with as little as 25 employees could benefit from going self-funded. Crossroads Insurance will help you evaluate whether self-funding is right for your company by looking at your financial condition, cash flow, and risk tolerance.
A self-funded or self-insured insurance plan is when you (the employer) assume the financial risk of providing health insurance to your employees. You pay for claims out-of-pocket, instead of paying an insurance company pre-determined premiums. Here’s a side-by-side look at how self-funded and fully-insured plans differ:
To help limit the risk of a self-funded plan, some employers purchase stop-loss or excessive-loss insurance. This insurance will reimburse your company when claims go over a pre-determined level. You can choose to purchase this coverage for one covered person (specific coverage) or for the entire group (aggregate coverage).