30 Aug 6 Reasons Self-Funded Plans Are Gaining Popularity
Many employers have been re-examining the employee benefits they offer since the ACA was enacted eight years ago in an effort to manage costs, navigate compliance and expand their plan options. Continue reading to learn more.
Since the ACA was enacted eight years ago, many employers are re-examining employee benefits in an effort to manage costs, navigate changing regulations, and expand their plan options. Self-funded plans are one way that’s happening.
In 2017, the UBA Health Plan survey revealed that self-funded plans have increased by 12.8% in the past year overall, and just less than two-thirds of all large employers’ plans are self-funded.
Here are six of the reasons why employers are opting for self-funded plans:
1. Lower operating costs frequently save employers money over time.
2. Employers paying their own claims are more likely to incentivize employee health maintenance, and these practices have clear, immediate benefits for everyone.
3. Increased control over plan dynamics often results in better individual fits, and more needs met effectively overall.
4. More flexibility means designing a plan that can ideally empower employees around their own health issues and priorities.
5. Customization allows employers to incorporate wellness programs in the workplace, which often means increased overall health.
6. Risks that might otherwise make self-funded plans less attractive can be managed through quality stop loss contracts.
If you want to know more about why self-funding can keep employers nimble, how risk can be minimized, and how to incorporate wellness programs, contact your local UBA Partner Firm for a copy of the full white paper, “Self-Funded Plans: A Solid Option for Small Businesses.”
SOURCE: Olson, B (16 August 2018) “6 Reasons Self-Funded Plans Are Gaining Popularity” (Web Blog Post). Retrieved from https://blog.ubabenefits.com/6-reasons-self-funded-plans-are-gaining-popularity