Healthcare Reform: Why You Should Consider Going Self Insured

Up until recently only very large groups would consider self-funding options but this has now changed and relatively small groups are considering it. This is due to a few reasons. Certain taxes can be avoided for one. When it comes to age banding this is likely going to impact the decision to self fund.

Previously a carrier could choose a large group size to spread the risk but these group sizes are likely to be a lot smaller now. If the group as a whole is relatively unhealthy the premiums are going to be unpalatable. Again, self funding becomes a good option.

Going Self Insured – Risks vs Benefits

It’s true that you have to know the risks attached and, for example, make sure that you get secondary coverage if necessary to mitigate them. On the flip side, another benefit of going self insured is that data now becomes available where it was not before, so that it’s possible to work out your claims cost.

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