When an employer is searching for employee benefits such as healthcare coverage, life insurance, pharmacy, dental, or vision insurance, they are faced with a wide variety of options. Self-funded health insurance may be a better option than a full-risk plan for certain employers, particularly if they are focused on flexibility and customization. John Court, PHP TPA Services Account Executive, highlights 7 big advantages a self-funded plan can provide to your business.
- Flexibility
With a self-funded plan, you have the flexibility to insert specialized vendors within the TPA platform to help mitigate costs.
- Control Plan Design and Expenses
You may create and adjust your benefit plan design to meet your employee's needs, and to help control certain costs.
- Quality Reporting Access
Your data is yours. With a self-funded plan, you have access to many standard reports that give insight into utilization patterns, cost containment activity, and financial protections that have been placed on the portfolio.
- Increased Financial Control
You fund claims as you go rather than paying a full fixed premium up front.
- Information & Reporting Management
Custom reporting options are available to best monitor and evaluate your unique data. These reports are designed after reviewing the claims’ portfolio and the clients’ desire for handling their self-funded program.
- Exemption from Certain Taxes & Laws
Most state taxes are exempt from self-funding programs, reducing certain related costs. Also, the federal government is more integrated with self-funded health benefit plans allowing these programs to avoid state required benefit mandates.
- Retention of Claims Surplus
Should a client realize lower medical claims than projected, they will keep this savings.
If you are interested in learning more about a self-funded benefits plan for your business, please contact PHP TPA Services at sales@phpni.com.
