Small Group Self-Funding – The Smart Way to Adapt to Obamacare
Small Groups (25 to 200 employees) now can access an innovative cost-saving strategy as they transition to the PPACA (Patient Protection and Affordable Care Act – commonly called Obamacare). It’s a strategy that had been limited to large groups, but now is available to smaller businesses. And it is worthy of consideration by brokers and their clients looking to mitigate possible increases in annual healthcare premiums.
CCHI’s New Small Group Self-Funding Program Offers Many Advantages:
- Provides greater financial control for employers
- Allows employers to hold plan reserves
- Functions as a normal insurance program (Benefits and Provider Network) from the employee perspective
- Wellness benefits inure to the benefit of the employer
- Plans are protected against adversity through Stop Loss Insurance
- Provides control over vendors and the Affordable Care Act
- Benefits administration, banking arrangements and provider networks are organized through a Third Party Administrator
The idea is to help groups move from the traditional fully-insured model to a self-insured model where large claims are covered from a specific point to an unlimited maximum through Specific Excess insurance.
Say that the employer is responsible for claims of up to $25,000. The Specific Excess insurance pays all claims covered under the Plan from $25,001 to an unlimited maximum. All of this helps put cost control into the employer’s hands rather than cede it to ACA protocols.