In today’s Corporate World, it seems like companies are in a never-ending quest to find ways of keeping top-tier talent in-house.
If your business doesn’t offer an employee benefit that your workers are looking for, it could end in them jumping ship for a company that does.
One of the biggest perks you can give your employees is a self-insured insurance plan, or in other words, self-funded insurance.
Employees will see that you’re willing to take on the financial risks for them and their family’s safety. Here are the top benefits of offering self-funded insurance plans for your company’s employees.
Many employers that are uneducated on the subject of self-funded insurance wonder “why do employers volunteer to pay the funds of their employee benefits?”.
It’s all about providing the amount of protection that your workers need. Especially when your workforce requires specific healthcare needs.
Self-insuring your employees’ healthcare allows you to have the peace-of-mind that they’re being taken care of. They work hard for you every day; protect them and their family’s future by providing them with a customized healthcare plan.
2. Lowered Fixed Costs
One of the biggest burdens to you and your employees are the amounts of fixed costs that are in insurance plans.
By self-funding your employee’s insurance, you lower the number of fixed costs that are necessary to get and keep the plan running. The less that you use on such costs means more money employees have towards their benefits.
Wasted money is a toxic aspect to all of your business ventures, and wasted money on the self-funded insurance solution you’ll provide is no different.
3. Control of Cash Flow
Why let the insurance carriers generate the income of compounding interest in health insurance plan reserves when your company can?
Without providing self-funded insurance, the insurance carrier that you use will receive that income from any premium dollars that are invested.
By taking on self-insurance, your company takes back control and gains the interest income anytime a premium is paid towards the health benefits you offer.
4. Lowered Administration Costs
Since you’ll be offering a self-insured healthcare plan through a third party, you’ll notice the lowered costs associated with it.
Insurance carriers charge an unnecessarily high premium for the administrative costs in their plans.
By using a third-party administration for your self-funded insurance, you’ll have access to the lowest admin costs available. Gone are the days of paying more than you need to for the same level of administration needs on your plan.
5. They’re Regulated Under Federal Law
Are you tired of keeping up with the various state health insurance laws on the benefits you provide your employees?
Self-funded insurance plans are regulated under the federal law known as the Employee Retirement Income Security Act of 1974 (ERISA). This gives you access to an all-encompassing level of insurance regulations.
No longer will you have to consider the different state regulations that disagree or clash with one another. You know only have the ERISA’s mandates and regulations that you need to follow.
6. Higher Level of Customer Service
If you’re going to be self-funding health insurance for your employees, then you want to make sure their every need is met by the third party you work with.
After all, what good is self-insurance if your employees are dealing with incompetence anytime they need to file a claim? They’d rather pay out-of-pocket themselves for better customer service.
Fortunately, the third party of your self-funded insurance plan will make sure that both you and your employee’s needs are met. They specialize in being available whenever your workers need to be tended to.
Even if it’s just an employee wanting to be pointed in the right direction, the third party will be happy to assist them.
7. Freedom to Pick a High-Quality Provider
Now that you’ve decided to move forward with providing a self-funded insurance plan for your company, you have the veritable pick of which provider to work with.
You can set up a contract with the insurance provider you feel best fits the needs of your workforce.
That means getting to take your time researching a few different providers, seeing what they can offer, and making the right decision for your situation.
No unwanted surprises will come up after signing a contract. You’ll be able to talk through all the details with any third-party provider you’re wanting to work with.
8. Higher Insights
As the years go by, your self-funded insurance plans will become more refined thanks to the level of reports your third party will provide you.
You can see any and all data on your insurance such as claims, medical expense types, and how the plan is being used by your employees.
You’ll even be able to see reports by department, letting you know what costs are most often associated with which workers.
Better yet, if any benefits aren’t being used after a few years, you can kick that benefit off your plan. You have the freedom to customize and redesign your plan any time that you’d like to.
Going the Self-Insured Route Has Never Been Easier!
Now that you’ve seen all the benefits that offering self-insured health insurance can give your company, it’s time to find the best provider to work with.
Still not convinced that it’s the right move? Be sure to read this article on saving costs by self-insuring your employee health insurance.
For more inquiries, please feel free to reach out via our contact us page and we’ll be happy to assist you further!