Controlling Health Care Costs With Self-Funded Plan Options

Understand the advantages and potential concerns that come with self-funding and whether it's the right decision for your organization.

Healthcare costs are constantly on the rise, and the cost to employers and employees is only becoming more of a burden. Traditional insurance carriers often offset these increasing costs by raising copays and deductibles, and employers paying the premiums find themselves having to shift the increased costs to their employees. Through self-funding, however, employers can tailor the benefits offered to their employee populations, which can prove more cost-effective for both employers and employees. Self-funding involves a more hands-on approach by involving buy-in from employers and employees alike to fully realize its advantages. As a small trade-off for the cost-savings and ability to customize benefits to an employer's workforce, employers and their TPAs must address certain plan design and compliance considerations. This material will provide a framework for the self-funding industry by describing the various concerns of which employers must be aware with an eye toward maximizing benefits while minimizing costs.