Self-funding is increasingly becoming an attractive option for sizeable employers. And with health care costs on the rise, there’s never been a better time to look at its advantages. Our National Accounts team provides third party administrator (TPA) solutions for today’s industry leaders, including schools, hospital and health care systems and businesses of every kind. Here’s what they look at when tailoring self-funded strategies for large employers.
What are the key advantages?
Self-funding gives companies far more control to customize health benefits and influence plan design. It also allows for significant cost savings potential. Also, using a self-funded model, employers receive more transparency and insights into claims data for analyzing and monitoring trends.
Let’s take a closer look at each of these key areas.
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- Cost savings. With fewer required taxes and fees, self-funding offers a pathway to lower administrative costs. The a pay-as-you-go system, whereby claims are managed directly as they occur, frees up cash flow. Plus, larger employers, because of their size, are often well equipped to handle any risk. On average, employers can expect to see eight to 10 percent in savings, though results will vary. This makes self-funding a good strategic investment for companies looking for more savings over the long haul.
- Flexibility and customization. One big advantage that comes along with self-funding is the ability to have more control. Companies have flexibility to tailor and customize plans as they see fit. They can also change their offering from year to year. The added flexibility allows organizations to stay competitive, make changes to manage costs and improve employee satisfaction.
- Data-driven insights. More transparency is another benefit. With insights into detailed claims data, large employers can identify areas for cost reduction, improve health outcomes and overall employee well-being. They can also direct information to at-risk employees to have greater impact and empower employees to make informed decisions.
Engaging our National Accounts team
At Meritain Health, we specialize in delivering tailored TPA solutions for large employers. And for customers with 5,000 employees or more, we have a dedicated National Accounts team ready to answer any questions.
If you’d like to connect with our team or find out more about tailoring self-funded strategies for large employers, contact us here.
This article is for informational purposes only and is not meant as medical advice.
