Employee Benefit Plans

Self-Funded Health Insurance

The benefits of Self-funding

Depending on your company’s size, demographics, and claims history, it may be cost-effective to self fund and reinsure your Health Benefits Plan. Self-funding “unbundles” traditional insurance, establishing a loss fund to pay expected claims. Reinsurance protects your business by covering losses when actual claims exceed your projected claims. In a self-funded plan, claims are paid on your behalf by a third-party administrator, selected by you and responsible to you for prompt, quality service.

Our experience with Self-funding

Benefits Alliance professionals have been managing self-funded programs for more than 20 years, from Vermont’s largest program with more than 17,000 employees to small programs with as few as 100 employees. Because we understand and practice both the science and the art of self-funding, The Benefits Alliance will skillfully represent your company’s interests throughout the process.

Our process for evaluating Self-funding

If you decide to explore the feasibility of self-funding, The Benefits Alliance will begin by analyzing your claims history. We will work with the reinsurance industry and with third-party claims administrators to develop a cost-effective, high-quality Employee Benefits Plan tailored to your company’s unique requirements. We will then structure reinsurance designed specifically for the size of your group and for the level of risk retention that is right for your company.

Your benefits plan will be integrated with our worksite Health Promotion Programs to emphasize shared responsibility for employee health and the cost-effective utilization of employee health care benefits. As you and your employees work together to lower claims cost, your company can benefit directly from the cost savings resulting from lower claims in any given year. At the same time, reinsurance will protect your business from the impact of unusually large claims and from unexpected claims frequency.

Whether you are considering self-funding for the first time or would like to have your current self-funded program managed and integrated with our claims reduction strategy, here is the most important fact you need to know—Benefits Alliance professionals are committed to providing our member clients with innovative insurance solutions and exceptional service.