Should you consider self-funding your health plan?
- Consider these organization’s stories and the solution to their health care challenges.
- Consider the benefits and drawbacks of traditional health insurance, partially-insured, and self funded health insurance below.
TRADITIONAL GROUP HEALTH INSURANCE
Benefits:
Carrier assumes all risk- Focus on mission, not admin / staff healthcare
- Can be older / unhealthy / new group to be insured
- Can be small or large
- International specialists advising/working for you
Carrier assumes all riskDrawbacks:
- Rising annual renewal premiums of 12% +
- Cost of health insurance
- Needing to do better with donor dollars (good stewardship)
- No control/No interest
PARTIALLY SELF- INSURED PLANS
Benefits:
- Best of both worlds – Fully insured and fully self-funded
- Carrier assumes all risk
- Focus on mission not admin.
- Control your own reserves/Grow your reserves
- If you work with us – 0% – 3% increases year over year
- For those wanting to transition into fully self-funded
- Have international specialists advising/working for you
Drawbacks:
- Not every group is a fit
- Need reserves to start
- Require good plan design
SELF FUNDED HEALTH INSURANCE
Benefits:
- You control reserves, costs, payouts, benefits
- You design your own plan
- No renewal increases
- Save money on taxes
- Earn interest
Drawbacks:
- Can’t easily get out once in, then hit with claims
- You assume full risk
- For larger group – Too few = bad risk
- Takes lots of time/admin
- You must become an international RX expert