To receive the full white paper click here...Self-funding-WhitePaper April 2011
A white paper identifying key facts regarding self funding for small and mid sized businesses has been published by UBA. The following is and excerpt of the publication:
Small businesses blaze a new trail with self-funding. Reform and rising costs make small and midsized companies consider a new way to pay for employee health care.
As details of the recent health care reform legislation trickle down from Washington, employers are starting to wade through the flood of legal and financial consequences this law could have on their current and future employee benefit offerings.
The Patient Protection adn Affordable Care Act(PPACA) - laden witha number of new requirements, an employer mandate and unknown future costs - is prompting many employers to take a hard look at what they’re doing- and what they are paying- for employee benefits. While cost-sharing and cost-shifting are common strategies, some small and midsized employers are taking an even bigger plunge into an alternative method of funding that once was feasible only for big companies: self-funded health care plans.
In a self-funded plan, the employer-not the insurance company - assumes the risk and cost fluctuations associated with their health care plan. Plan costs can fluctuate by month (or event by week), depending on the medical claims submitted by the company’s employee. by contrast, a fully insured (or group) plan relies on the insurance carrier to assume the risk and administration.
"There has been a trend over the past decade of small to midsized employer moving toward self-funding, but we are seeing this now more than ever," Robert Calise, Principal at Cornerstone Group of West Warwick,R.I., a member firm of United Benefit Advisors(UBA), a member owned alliance of the nation’s premier independent benefit advisory firms. "Since health care reform, smaller companies under 200 employees have shown an increased interest in self-funding, which offers more control over the dynamics of the plan", he said.
Several recent studies highlight this trend. The 2010 UBA Employer Opinion Survey found that 17.5 percent of respondents currently have a self-funded plan, while 12 percent said they would like to implement that funding strategy someday. Read the rest of this white paper by clicking on the first sentence of this post.
Thank-you for your help with this complex issue. There is a lot of information out there but not much clarity. Knowing how the law will impact “our” company is critical for long term success.
Doris Willmer P.E. , President
Willmer Engineering
As the economy improves, employers should re-evaluate their benefits now so they are better positioned to hang on to top performers, experts say. [Read more]
