Employer Group Self-Funded Insurance Plans in Washington
A self-funded or self-insured plan is one in which the employer provides employee insurance through the company’s own funds. Usually, self-funded insurance is ideal for large companies with 100 or more employees, but there are some situations in which employer group self-funding insurance plans for small business make sense too. Let’s go over the subject in more detail – learning its advantages, and some key factors which will help you decide whether self-funding insurance is right for you.
Advantages of Self-funded Insurance Plans for Washington Employers
With rising healthcare costs, more and more employers are taking the self-funded route. It’s a smart decision, because self-funded insurance, if viable, provides the following added benefits:
- You can customize the plan to meet the needs of your employees. Normally, when you purchase employer insurance, you buy a plan that covers everyone, and it may not be as flexible as you’d like. In a self-funding plan, you can change things as you want to.
- You have the opportunity to pay less for your health insurance than a fully funded plan.
- Your business won’t be subject to the same taxes as fully funded health insurance plans.
Of course, there are also some disadvantages of choosing self-funding insurance. The biggest, perhaps, is that your health plan expenses will be unpredictable. Certain situations may also lead to financial loss. However, there are ways to protect your organization.
Hows Do Self-Funded Plans Work?
Is a self-funded plan right for you? Generally, it isn’t a viable option for small businesses, or organizations with poor cash flow. However, there’s a lot more to self-funded insurance. There is, for instance, partially-funded insurance. In a partially-funded plan, you can get part of your premium back at the end of the year if you meet certain criteria. Another important thing you need to know about is stop-loss insurance, which is something most medium-size companies purchase to protect themselves from extraordinarily large claims. Stop-loss insurance is a contract between you and the carrier which states that they will pay for claims that cross a specified amount. We mentioned earlier that more and more employers are switching over to self-funded insurance. However, what are the numbers exactly? How much is ‘more’? According to the Self-Insured Institute of America, a 2000 report by the Employee Benefit Research Institute found that approximately 50 million workers and their dependents receive benefits through self-funded plans.
About McGregor Benefits
We are an independent health insurance agency based in Burlington, WA. We work with over 50 insurance carriers throughout Washington state, and have a team of expert insurance brokers who will make sure your company gets the best plan for your needs. You can talk to an expert employer group self-funding insurance agent from our team when you’re ready, and they will answer any further questions you have and help you understand the concept better. Self-funded insurance can be rather complicated, and it can be difficult choosing the right employer group self-funding insurance provider. Our help will make the process seamless and easy for you. When you hire us, our expert brokers will help you prepare the perfect plan. Furthermore, we will organize employee meetings so your workforce is fully aware of their benefits. The best thing yet, however, is that you get our services for free. If you choose to work with us, you need pay nothing extra for our services. Have questions? Reach out to us today by calling 888-299-0949 or by filling in this short form.
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