Small Business Owners – Concerned about the cost of Healthcare?

If you have a healthy group of 5 or more employees there is a compliant alternative to the Affordable Care Act plans. It can be made very easy for you to fund your group’s health insurance claims with a plan that is owned and funded by you. You select features, options, deductibles and you may set up employees to have some cost sharing requirements such as deductibles or coinsurance. When we mention the term, “self funding” many employers believe they would be burdened with the entire cost of their employees claims. Self funded plans, however, typically include a stop-loss where an insurance company steps in to cover claims that exceed a pre-determined amount. After underwriting of a group is completed and projected total dollar amount of claims for the year is determined, a monthly premium is assigned that funds the expected losses, stop-loss insurance and covers the cost of plan administration.  If the group’s claims exceed the aggregate deductible, the stop loss insurance steps in to cover the difference. You always know your maximum out of pocket potential for the year. On the other hand, if premiums paid for the year exceed losses, you, the employer receive a refund of the excess premium. One company that administers self-funded plans says 60% of their employer groups receive a refund. If you have a small group plan in place now or if you are considering implementing a group health plan, this is an option definitely worth considering.

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