Self Funded Insurance Plans: Right For Your Business?

According to the Society of Professional Benefit Administrators, self funded insurance plans account for about 2/3 of the individuals who are covered by employer-backed coverage. What sort of benefits could this type of insurance offer your business?

For many businesses, self funding can lower the cost of offering medical benefits. One reason for this is that instead of paying premiums to cover future claims, you could pay the medical expenses as they happen. Another reason is that you may be able to avoid the fees that come with traditional insurance, such as premium taxes and risk charges.

By depending on a self funded plan, you may also experience greater freedom. Instead of having to choose coverage options from the fixed list of a typical insurance plan, you can create a custom plan that takes the needs of individual employees into account, while still maintaining your business’ standards and objectives. You also may not be bound by the state laws that are usually applied to benefits.

Offering health benefits is often said to be one of the most reliable ways to encourage well-qualified individuals to apply for positions at your business. Through becoming one of the many businesses that choose self funded insurance plans, you may be able to offer this essential employee benefit at a fraction of the cost of traditional insurance.

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