With the increase in healthcare costs and the evolving marketplace, small businesses are faced with many challenges. They also encounter many different health plan options, such as self-funding, but may not know facts about how it works or whether it could meet their needs.
A self-funded plan can be a great option for some employers, allowing them flexibility to customize a plan tailored to their needs, a way to manage healthcare costs, and the potential to earn a refund at the end of their plan year. Although self-funding an employee benefit plan and purchasing stoploss insurance are not a fit for every employer, the following information will help debunk some key misconceptions brokers and small to mid-size employers have about self-funding:
Self-funding isn’t a fit for every employer, but it can be a viable option for some small to midsize employers in today’s changing marketplace.
1. LIMRA; “No Small Matter: How Small Businesses Make Decisions about Employee Benefits,” 2013
2. Kaiser; HRET Survey of Employer-Sponsored Health Benefits 2011-2013
CBA offers self-funded plan designs with stop-loss insurance uniquely designed for small to mid-size groups. For more information or a quote, e-mail firstname.lastname@example.org or call (800) 537-6614.