Self-funded insurance is one way to reduce overall health insurance premiums and take control of rising costs associated with group health plans. But so far, the risk has been a determining factor for many groups seeking to save on their premiums.
Is “self-funding” for you? Download our infographic here.
Self-funded insurance can also create a lot of work and be risky for your workers IF you choose to self-insure and then have a bad year, numerous very expensive claims, or someone on staff comes down with a chronic disease requiring years of costly treatment. At that point you may find it very difficult to get insured again (or very expensive), even too costly when renewing your reinsurance policy.
Not anymore.
Good Neighbor Insurance has been learning and planning these past years to help large and small international organizations address these exact issues, saving money and taking control while avoiding exposure and crippling costs which could put smaller organizations at risk.
We have added two self-funded experts with an amazing track record of saving non-profit agencies money –
Over the last number of years these groups (major Evangelical and Mainline missions groups, non-profit organizations, social good businesses…) have averaged under 3% premium increase year over year, with Major U.S.-based insurance carriers, and helping groups set up their own reserves to save all that money for the future (Compare that to 12-14% standard trend increase in annual health insurance premiums)! – And we’ve documented their savings here.
For example, in January, 2014, three groups renewed: Two of them had a +0% annual renewal increase, and one actually went down for 2014. See more testimonials and real case studies at www.selffundedhealthinsurance.com.
Good Neighbor’s professional staff specialize in helping international non-profits, faith-based groups and charities-which not many people can claim. And now we can confidently say that we are ready to help you self-fund whether your group is inside or outside the U.S.A.
The lowest they’ve saved a group in the last decade is around $18,000 annually (group of 32) and the largest is $400,000+ annually (with 380 people on the plan) all while taking steps to ensure that their groups take very little risk and are sufficiently reinsured. Now those savings can go back to helping people which is our goal! At the same time, setting up a self-funded plan may be something you can do yourself. The secret is in knowing how to structure a plan design that, combined with the right amount of reinsurance and a couple other items specific to overseas and non-profit groups, can realize the contrary goals of both saving money AND keeping your people safe. Because if your workers’ health benefits are reduced, then they are not safer. This is the biggest problem facing organizations trying to cut costs – Saving without cutting coverage and real protection.
We have a Special Report on this subject we printed and are making available free either by mail or via .pdf here.
Consider this when self-insuring:
Is it the right move for you?
Most companies’ health insurance is part of a much larger pool of 20,000 or more people to spread the risk/costs associated with coverage. When you self-insure, you only pay your own claims (and you keep the rest of the premium), BUT you also have to pay all your own claims. And your risks are spread among only 150-300 people (including your employees, spouses, their children,…) instead of 20,000.
Would you buy a health policy for your family knowing the cash reserves were only from a pool of 150-300 people?
- You can’t gamble with worker’s health
- You can’t self-insure hoping that you have good year after good year
- You have to know reinsurance so you don’t get hammered after a bad year
Good Neighbor Insurance and our new consultants know ways to ensure you are protected, AND can help you continually build up reserves rather than having to continually deal with annual rate increases or cut benefits. In fact we can show you how to increase benefits without increasing costs. Visit http://www.selffundedhealthinsurance.com or email pei@gninsurance.com to find out if self-funded insurance is right for your organization.
GNI has posted additional videos describing self-funded health insurance here, and on our YouTube channel at: https://www.youtube.com/user/gninsurance
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