Dallas, Texas – January 9, 2020 – BenefitCorp, a Texas PEO consulting firm, recently posted a blog to educate employers on the importance and answers the question, what is self funded insurance? Self-funding happens when business owners take on the risk of giving their employees some healthcare benefits. Unlike fully-insured medical plans, self-funded insurance doesn’t require companies to pay premiums to insurance providers.
Self-funding is also a long-term strategy that allows a business to have total control of its healthcare policy and allows employers to pick a plan that aligns with their specific needs by tailoring options for coverage to each of their employees. These employer-funded plans also let businesses directly pay for healthcare costs thanks to stop-loss insurance, which can help cover large claims. Stop-loss premiums and administrative fees are typically fixed monthly expenses associated with self-funded insurance plans. Employers will generally establish a trust fund to pay claims and enlist a third-party administrator (TPA) to process or examine these claims.
By resorting to self-funded insurance, business owners can save significantly in administrative costs associated with risk charges, claim reserves, state premium taxes and insurance provider profit margins. Companies can also organize their healthcare (and other benefits) plans around their unique needs. Among the benefits that can be self-funded are dental, vision, prescription drugs, short-term disability and health care (including HMO, PPO and POS). Employers also benefit from high control over cost-sharing, policy limits, retiree benefits and eligibility requirements.
Self-funded insurance is a great option for any company that is prepared to take on any type of predetermined financial risk and that has enough cash flow to deal with any potential high claims. Self-funding could be a good fit for businesses seeking to customize their healthcare benefits.
The PEO Consultants at BenefitCorp are extremely knowledgeable about self-funded insurance models and can help employers learn more about medical stop-loss and insurance captives, among other things. BenefitCorp has extensive experience in health, property and casualty, and compliance. It is located at 12655 N. Central Expressway, Suite 810, Dallas, Texas 75243. You can call them at (972) 737-7875 or contact them online at https://benefitcorp.com/ for more information.
Company Name: BenefitCorp
Contact Person: Marc Pieroni
Email: Send Email
Address:12655 N. Central Expressway Suite 810
Country: United States