As health insurance premiums rise, businesses are exploring other options for providing healthcare to their employees. As a result, many businesses are choosing to forego traditional group health
insurance plans (fully- insured plans) and are adopting alternative programs, such as self-funded medical plans (self-insured plans). A self-funded medical plan can mitigate the problem of increasing insurance premiums and help to reduce employee healthcare costs.
In 2000, about 48% of all employers self-funded their employee healthcare coverage. By 2015, the percentage of self-funding employers had eclipsed the 60% threshold and is expected to continue to grow at a significant pace. Today, more than 80 million people – 60% of all workers under the age of 65 – are covered by self-funded employer health plans. Given the rising cost of healthcare, and the complexities associated with compliance, more employers are likely to explore self-funding as an option to lower or offset the cost of healthcare delivery to their employees.
There are many advantages to a self-funded medical plan compared to fully-insured medical plan. To read about the benefits, CLICK HERE for our client friendly flyer.