Out of the box: self-funding for small & mid-sized employers

Are you tired of increasing healthcare costs while receiving no information about employee claims? Large companies have been using self-funding programs for years to reduce their costs. Smaller and mid-sized companies can also take advantage of self-funded programs that significantly limit your risks of downsizing. Self-funding programs are exempt from many of the costly mandates under the ACA—including medical underwriting.

If you believe that your employees and their families are healthy and do not mind filling out a medical questionnaire, Rittenhouse Benefits may be able to offer you self-funding program with significantly lower costs. Companies that have a claims report generally will not be required to have their staff fill out questionnaires.

Another advantage is that many self-funded programs enable you to custom-design your benefits offering to meet your employee’s needs and your business goals. Additionally, you will receive periodic claims reports so you will know exactly how the program is running.

Two variations on self-funding that adapt particularly well for smaller and mid-sized organizations are level funding and captive insurance programs.

Level Funding

Level funding features a fixed monthly invoice that represents 1/12 of the maximum cost of your exposure for the year.

Captive Insurance programs

Captive insurance programs use a pooling approach for large but non catastrophic claims. Catastrophic claims are covered through traditional stop/loss policies.

Take the next step—get out of the box

To learn more about self-funded and other creative benefits ideas from Rittenhouse Benefits, call today or fill out the contact form and click Send.