Employers Discover A Better Way To Pay For Health Care Benefits, USA

Main Category: Health Insurance / Medical Insurance
Article Date: 04 Feb 2008 - 4:00 PDT

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Employers can reduce costs and promote wellness by changing the way they pay for the health care benefits they offer. This important lesson came via a special seminar - "Self-Funding 101" - hosted by Intercare Insurance Solutions. The seminar was offered to San Diego's mid-size employers this week. Representatives from more than 80 companies participated.

Attendees explored the differences between fully-funded and self-funded options for their benefits program, and the advantages of a self-funded approach. Fully-funded programs are presumed to have lower risk, but self-funded programs can deliver more value and better results.

"The decision about how a company will pay for health care benefits is critical," said Mike Barone, president for Intercare. "We know self-funding can be a little intimidating for some employers because costs aren't fixed and the concept of risk is uncomfortable. But once employers understand how to assess risks and rewards, they see that self-funding provides significant benefits that aren't available with a fully-funded program."

"Self-Funding 101" is just one in a series of complimentary, invitation-only, educational seminars offered by Intercare. The series is designed to share the most current - and most effective - strategies in benefits management with human resources and other professionals. This week's sessions were conducted on Tuesday, Jan. 29, at the Hyatt Regency La Jolla in San Diego, Calif. and on Thursday, Jan. 31, at the Hilton Golden Inn Carlsbad Beach, in Carlsbad, Calif.

Seminar attendees discovered many important advantages of a partially self-funded program. For example, with self-funding, employers can immediately save anywhere from 4 percent to 8 percent because they no longer pay a risk premium to the insurance carrier. Savings also come from a state premium tax that isn't paid by companies with a self-funded program.

More importantly, with self-funding, employers gain access to claims and other data they don't get when they are fully funded. Data is important because it provides insight into the specific health issues each employer faces. This knowledge helps employers design flexible benefits and programs that address the issues most prevalent in their workforce - and that greatly influence their costs as well as the health and productivity of their workers.

"Many employers have taken an important first step by offering wellness programs in the workplace," said Barone. "But with a fully-funded program, when employers positively impact wellness and reduce their claims costs, they may not fully benefit from the results of their efforts. With self-funding, the better they manage their employees' health and reduce their claims costs, the more they benefit. We think self-funding is the way to go for today's most progressive companies, and we're committed to helping employers learn about - and implement - this option."

About Intercare Insurance Solutions

Intercare Insurance Solutions was founded in 1994 by insurance professionals who realized that the role of the broker was dramatically changing due to massive industry consolidation. Since then, Intercare has evolved into an organization comprised of highly-skilled brokers backed by experienced insurance, financial, medical and service-focused experts and processes.

Intercare's unique approach enables them to deliver insurance programs that support each client's financial and human resource objectives. Headquartered in San Diego, California, the company provides customized solutions to more than 800 clients.

Intercare Insurance Solutions