Florida Self-Funded Health Insurance
Taber Financial Services Inc. offers 25 years of specialization in a unique alternative funding approach to delivering group health insurance. This innovative concept called “Limited Self-Funding” offers Florida businesses the opportunity to control and manage the costs of its benefit plan. Self insured or self-funded medical plans are really just partially self funded health plans.
As an alternative to traditional fully-insured group health coverage, the Limited Self-Funding program limits the involvement of an insurance company to insuring extraordinary losses. This reduces overhead, margins and resource allocation, resulting in significant economic and risk management advantages to you.
The passing of the Employee Retirement Income Security Act of 1974 (ERISA) provided many additional incentives for both large and smaller companies to consider the advantages of self-funding and partially self- funding their benefit plans.
You are probably overpaying for health insurance If your company meets the following criteria:
- You have 25 – 250 employees.
- You’re fully insured.
- Your employees are relatively young and healthy.
- You don’t know of any serious conditions within your group.
- You’ve been with the same carrier for more than three years.
The carriers overcharge the average group so as to assure that there’s enough profit generated by you (and the other eighty percent of employers) to cover the massive losses they incur on the sickest twenty percent. Self-funded plans minimize the cost by better managing the overcharge.
- Brokers do not typically get commission on self-funded insurance business. Bear in mind that brokers may have a financial incentive to keep you in a fully insured policy..
- Most brokers rarely understand self-funding. It’s complex, the commissions are lower, and if a bad year occurs, the broker knows they may take the blame.
Self-funded medical insurance is all about spending just about the right amount. In partially self funded insurance, the employer shares the risk with an insurance carrier. The employer hires a third party administrator to pay actual claims and purchases insurance to protect against extreme risk, such as:
- A very large case, or "shock claim"
- Over-utilization by employees ( lots of smaller claims add up)
The employer must be willing to trade the complete security of a fully insured plan for the chance to better manage their risk and reap the rewards. It cannot be over-emphasized that proper education of the potential partially self-funded employer is vital to both the initial and long term success of the program.
We look forward to developing a lasting business relationship and serving your employee benefit planning needs. Give us a call anytime.