Unique Member Benefit Alert: A Primer on Partially Self-Funded Health Insurance

Categories: Association Leadership, Association Marketing Strategy, Membership Sales and Retention, Non-Dues Revenue


Because we are committed to promoting business and commerce, WebLink and our partner eHealth want to be sure you and your members are aware of all the available options on the matter of employer-provided health insurance. Thanks, eHealth, for the valuable information!


Washington continues to battle over the future state of healthcare, but there is no doubt that offering benefits to employees TODAY helps attract great talent and improve employee retention. With the cost of health insurance always climbing, we want to be sure you and your members know about an important small business coverage alternative – Partially Self-Funded Small Group Insurance.

Self-funded insurance isn’t foreign to large groups, who have used this for years to save money and control risk. In the past, it was these larger groups that had the buying power and leverage to access these plans. But now, WebLink and eHealth are working together to create solutions just for associations and chambers. Imagine being able to provide a wide range of plan options at competitive prices as a membership benefit. Now THAT’S unique.

The below is a primer on Partially Self-Funded Insurance that your staff can (1) use to inform themselves on a key business decision facing many current or prospective members, or (2) share with members and prospects as a valuable piece of relevant content to their business.

 

Partially Self-Funded Insurance 101


What does partially self-funded insurance mean
?

Health insurance plans typically fall into two categories: fully insured or partially self-funded. Most traditional group health insurance plans are fully insured, meaning that you pay monthly premiums to the insurance company, and then the insurance company pays for covered medical services.

By contrast, with a partially-self-funded plan the employer would take on some of the risk involved in paying covered employee medical claims. You make deposits into an account designated to pay for covered medical expenses. If your employees receive more covered medical care than can be paid for with that money, the insurance company pays the difference. However, if your employees do not use up the money in the account, that money is typically refunded to you at the end of the year.

Top 3 Benefits for Small Businesses to Choose Partially Self-Funded Insurance:

  1. Saving money. Like fully insured plans, many of your insurance-related expenses in a partially self-funded plan will be tax deductible. But partially self-funded plans also give you the chance to potentially save money if the actual annual medical expenses of your employees and other covered persons turn out to be lower than budgeted under your organization’s policy. There’s a limited risk in taking on some responsibility for employees’ medical claim costs, but businesses with younger or healthier employees are more likely to get a refund of some of their unused funds at the year’s end.
  2. Personalize your benefit options. With partially self-funded insurance, you may be better able to select the coverage that suits your budget while still covering your employees’ personal coverage needs. Talk to a licensed eHealth insurance agent today (1-844-574-7386) and learn more about finding a plan that’s suited to the needs of your employees – a win-win solution to a happier workforce!
  3. Transparency of claims data. With standard group health insurance plans, your premiums can go up every year without much explanation. It can be really frustrating. With partially self-funded plans, however, you’ll have insight into the dollar value of all covered medical claims so you can see the finances behind your plan for yourself and better understand why premiums may be raised in the future.

To compare your health insurance options, just go to eHealth.com and enter your zip code and other basic information about your business. In many states, you’ll be able to review personalized quotes and side by side comparison of plans offered in your area online. You’ll also have access to personal, unbiased assistance from licensed agents by phone, email or online chat. Call us at 1-844-574-7386 to learn more about how simple it is to enroll in group insurance!

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