Did you know that …
The average healthcare cost per employee topped $11,000. ~Aon Hewitt Health Value Initiative database
Employees’ share of healthcare costs has increased more than 134 percent since 2005. ~ Aon Hewitt Health Value Initiative database
Projected 2016 premium trend rates for PPO/POS plans show regional variations, with the lowest rate of 6.1 percent in the Midwest and the highest rate of 9.8 percent in the West. ~2016 Segal Health Plan Cost Trend Survey
Trends for most dental and vision plans are projected to decrease in 2016. ~2016 Segal Health Plan Cost Trend Survey
In other words, healthcare expense management is a moving target. Knowing how to control costs, administrate plans, and still do well by your employees can become a daily challenge.
Self-Funding Makes Cents
About 26 percent of employers with 100 – 499 employees self-insure, compared with more than 82 percent of employers with 500+ employees. ~ U.S. Department of Health and Human Services
Now, more than ever, having a self-funded healthcare benefit plan makes financial as well as sustainable sense. And it’s not just enterprise level companies that can benefit. Mid-size entities can and should avail themselves of the same advantages.
In evaluating the tradeoffs between fully-insured and self-funded, companies see the two clear advantages that self-funding (also referred to as self-insured) can provide:
- Lower cost
- Freedom of plan design
In an age when healthcare benefit plans have a direct correlation with employee morale and the ability to attract and retain talent, getting the most out of your healthcare plan makes sense. Small to mid-size companies are often intimidated by the self-funded route out of concerns about the administrative workload. Using data and analytics will help you fine-tune your plans so you get the exact services you need and don’t overpay. In addition, a robust healthcare benefits plan administration platform can make sure you have this essential data at your fingertips. Together, these strategies will help you get the most out of your plan for the least cost without reducing benefits.
To learn more about the benefits of self-funded healthcare plans, download our white paper Maximizing Your Company’s Self-Funded Healthcare Benefit Plan today.