Historically large employers have self-funded their employee benefit programs to better manage risks and reduce costs. However, real and perceived barriers have kept smaller employers from doing likewise until recently. These barriers are now being taken down and no longer seemed quite as tall in the wake of health care reform.
The Patient Protection and Affordable Care Act imposes new taxes, fees, and restrictions on fully insured medical plans, changing how employers, big and small, design and administer these plans. In contrast, self-funded and level-funded medical plans are exempt, not only from many of these restrictions but also from the taxes and fees that will eventually grow to 10% or more a premium. These are only some of the benefits of self-funded medical plans now available to fully insured medical plans under the PPACA.
When combined with HSA, teledoc programs, and even reference-based pricing, these self-funded plans become a powerful tool assisting employers in providing high-quality benefits for their employees.
Over the next few months we plan to provide you with information you can share with your clients to educate them about this approach. If you feel we can help them please contact us for an introduction.
We appreciate the opportunity to work with you.
Thank you so much.
Gregory S. Sailer RHU, REBC