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Self-Funding

from Songer Benefits, Inc.

Employee Health Insurance

Whether you are looking for large group or small group coverage regarding employee health insurance, what are your concerns and needs? You want:

  • The best healthcare solution for your employees’ medical needs.
  • Sensible costs for your company.
  • To comply with ever-changing healthcare guidance.
  • Contentious healthcare plan benefits to measure against each other.

Variations in healthcare laws and growing healthcare premiums force companies to decrease their benefits while also moving more costs to employees or dropping coverage altogether. None of these options are acceptable. As such, it’s time to look for viable choices for the coverage you may already have.
Whether your business works on a self-funded, partially funded, or fully insured medical plan, Songer Benefits creates information-rich. Still, easy-to-understand options that serve your operational needs, as well as the healthcare wants of your employees.

LARGE GROUP EMPLOYEE HEALTH INSURANCE

Self-Funded Employee Health Insurance
A self-funded plan is a viable option when searching for alternative healthcare plans to reduce spending without the risk of losing employee coverage. A self-funded health insurance plan, also known as a self-insured health plan – is normally implemented by large employers. This insurance decision lets your company run your own healthcare policy rather than implement a fully insured plan from an insurance issuer.

  • Take the time to be innovative about health insurance. Besides the major benefit of saving money through a self-funded plan, your business can develop an inventive healthcare plan design customized to employee needs. Segments of a self-funded design can include wellness programs and consumer-driven healthcare plans (CDHP).
  • Give employees with more control and fewer costs when it comes to healthcare. CDHPs provide employees more control over how their medical dollars are being used. A CDHP is often possible in a high-deductible health plan (HDHP), accompanied by a reduced premium. This option reduces employee medical costs. The employee must only pay for healthcare costs until they satisfy the set deductible.
  • Utilize flexible spending accounts. Tax-free or tax-deductible spending accounts are available as a part of a CDHP to cover medical costs. These such accounts can include a health savings account referred to as (HSA), a flexible spending account (FSA), or a health reimbursement arrangement.

Bottom line: A self-funded plan means fewer employer costs, lower and more consistent employee costs, and more comprehensive control over healthcare choices.
Self-funded plans can be precarious and risky. Monthly claims can only be estimated. Some months can cost a company more than average or anticipated.

PARTIALLY FUNDED EMPLOYEE HEALTH INSURANCE

An offshoot of self-funded employee health insurance is also designed for large group health plans. A partially funded employee health insurance plan can offer many of the same benefits as a fully self-funded plan. 

  • A partially funded plan can include a combined health reimbursement arrangement (HRA), an employer-funded reimbursement plan with tax advantages. Pre-tax money is set aside by the employer as an employee has guided and used to pay for healthcare expenses.
  • An HRA is attractive for its versatility in both cost and terms of use. Employers have the prerogative of determining what HRA funds can be used and how the HRA is intended.
  •  Used in sequence with an HDHP, the partially funded plan also possesses reduced premiums for businesses. Instead, proceeds can be utilized to fund HRAs, which will be better utilized in most cases.

Bottom line: Partially funded employee healthcare plan passes the employer’s surplus on to the employee's pre-tax dollars directed into health reimbursement accounts.

SMALL GROUP EMPLOYEE HEALTH INSURANCE Plans

Fully Insured Employee Health Insurance Plans
Small group employee health insurance is usually placed as a fully insured, employer-sponsored health insurance plan. This method of providing employees with healthcare options means the bulk of the responsibility is the employer, who is responsible for:

  • Company-paid premium to the insurance carrier.
  • Set premium rates based on the number of employees enrolled
  • Changes to the monthly rate if there is a change to the number of employees enrolled.

Deductibles and copays are the responsibility of employees and their dependents.
Bottom line: A fully funded healthcare plan means you are doing your employees a huge favor. However, an adjustment in the number of enrolled employees could shift the monthly premium in a negative or positive direction.

Partner With Songer Benefits For Large, Medium and Small Group Health Insurance

Employee health insurance can be complex. Nonetheless, at Songer Benefits, Inc., our goal is to place you with the right insurance carrier based on your employee needs, sought benefits, and more. Our health insurance experts will review your business needs and provide numerous viable and affordable group health insurance options. Songer Benefits is here to help you explore the best health insurance solution for your employees.