Advantages of Self-Funding
Two-thirds of employees in the U.S. who are covered under an employer-sponsored health plan are covered by some form of self-funded health plan. The following are just a few reasons why employers select self-funding:
Increased Financial Control
Most employers with self-funded plans fund claims as they come due rather than funding them through advance premium payments, which means that you are investing your money instead of an insurance company. We provide you with clear reports and documentation of how every dollar is spent.
By funding claims directly, an employer avoids the costs of claim reserves, retention to cover the insurance company’s administrative costs, profit margin, risk charges, premium taxes, and a contingency margin, which are included in an insured premium on top of the costs of expected claims. Today, these reserves and retention charges can range from 10% to 30%.
Self-funding allows employers to design a health benefit plan to address specific employee needs, as well as company objectives. Self-funded plans are also exempt from state insurance laws that typically mandate certain benefits for insured plans.
Plan design flexibility and on-going analysis of plan expenses allow self-funded employers to make the plan design changes needed to manage costs. Self-funded plan designs can include strategies to monitor utilization, steer care to discounted provider arrangements, and assure appropriateness of care, all of which encourage wellness and provide incentives for wise utilization of care.
We provide convenient, secure access to all the information needed to manage a self-funded plan effectively. Authorized individuals of a self-funded employer receive confidential monthly reports, and everyone covered under the plan has secure online access to timely benefit-related information.
24/7 Access to Plan Information
Our Website, www.physicianscare.com, offers both our client employers and the covered persons enrolled in their plans comprehensive access to their health plan information 24 hours a day, seven days a week. On our Website you will find information on eligibility, claims payments, and more.