Self-Funding Options for Public Sector Organizations
Many public sector organizations, big and small across the country are finding that moving to self-funded, or self-insured health plan provides them with more control over costs. In these types of health insurance plans, an employer assumes some of the financial risk of providing health care benefits to its employees.
Both employer and employee contributions toward the plan generally go into a reserve fund that is used to pay claims. In order to help manage claims dollars and cover large, unexpected, catastrophic claims, employers generally insure the risk at a certain level with stop-loss insurance (also called reinsurance). This protects the financial integrity of the plan and therefore, the employer’s costs.
For small to mid-sized employers, National Insurance Services also offers a progressive way to self-fund their health insurance, through Captives. In a Captive arrangement, employers join together to purchase their stop-loss insurance. It can provide pricing stability, plan design flexibility, purchasing power, help controlling fixed costs, and manageable risk levels.
To learn more, check out the resources below:
