Today’s business climate is challenging. As we enter our third year of the Pandemic, the disruptions to the way we do business continue. Most experts believe that the “new normal” will include many of the changes which occurred, including offering employees the opportunity to work remotely, strengthening employee engagement by improving organizational culture and growth opportunities, and the critical importance of benefits to recruit and retain employees.
All of this occurs as healthcare costs spiral out of control. Employers of all sizes struggle to budget for annual cost increases while maintaining benefits for their employees without passing on higher deductibles or asking employees to pay a higher percentage of the premium.
Managers are looking for benefits solutions that provide high value to their organizations and their employees but are still affordable. They are looking for innovative ways to save money AND offer better benefits to their employees.
Self-funding provides cost relief to employers regardless of size. It allows employers to keep short and long-term costs under control while providing the benefits that employees seek.
Self-funding is a win-win scenario that offers additional advantages. These include:
- Financial and administrative control – When the company makes the change to self-funding, it becomes responsible for administering the health plan. That means they have the ability to:
- Operate efficiently and effectively
- Uncover areas where systems and processes can be improved
- Optimize plan performance, improve employee satisfaction and engagement and ultimately save money.
- Cash flow is improved – First, the company is paying claims as they occur, rather than paying a premium to pre-fund claims and other costs. The company can invest and receive returns on unpaid claims funds. Secondly, if claims have been lower than expected at the end of a plan year, the savings belong to the company.
- Companies do not have to provide a “one-size-fits-all” benefits package. Instead, they can design a cost-effective health plan with the benefits employees want – at a lower cost. These include:
- A robust advocacy program that helps your employee and their family navigate the health care system not only to save costs but improve quality of care.
- Provide coverage for alternative treatments and procedures your employees want, such as chiropractic services and acupuncture.
- Design prescription drug plans that provide cost-saving opportunities.
The flexibility of self-funded plans offers another advantage to companies with multiple locations. State law requirements do not bind Self-funded plans, so a company with multiple locations is not burdened by managing multi-state plans. Instead, the company can design and manage a single self-funded plan that fits the needs of all of its employees regardless of location.
Even better, the emergence of two innovative, second-generation solutions for self-funded plans – reference-based pricing and direct contracting, takes self-funding to an even higher level in terms of cost savings, higher quality, and better employee engagement and satisfaction.
If you are interested in reducing your health care costs by 30% and providing a benefits package to your employees that delivers personalized advocacy and higher quality of care, we can help. Reach out to us at info@mynextgenhealth.com or complete the contact form. We can begin working together to create benefit solutions that don’t keep you up at night or threaten to break your budget.