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Self-Funded Benefit Plans

An Explanation of Self-Funding

We have brought the benefits of self-funded insurance plans to over 5,000 companies, delivering the quality customer service that we would expect ourselves. Being self-insured ourselves, we understand the power self-funding offers, as well as what our clients need and want.

A self-insured health plan allows employers to have more financial control over their group health plan, as opposed to a traditional fully-insured plan with high premiums and a use-it or lose-it philosophy. When you self-fund, you only pay for the claims your group incurs. Self-funding is utilized by two thirds of all employers in the United States and continues to grow because of the flexibility and potential for savings.

Self-funding your group benefit plan will eliminate the high costs of fully-insured premiums, which include: Profit Margins, Risk Charges, Reserves, Contingency Margins, State Regulations, Premium Taxes and Retention and Persistancy Bonuses. In addition, benefit plan design will be customized to your group instead of an off-the-shelf plan from an insurance carrier.

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Why Self-Fund?

Besides rising insurance premiums and over utilization of group health plans, one of the biggest challenges employers face is the lack of claims experience provided to them from the fully-insured carriers. The main reason for holding this information back is insurance companies' fear that if employers actually knew what their costs were, very few would be fully-insured. Without this information, employers are at a disadvantage when trying to figure out if a self-funded plan will work for them.

Keeping in mind that insurance companies are for-profit companies, we have worked with many employers to face this challenge and moved them to a partially self-insured plan where they can benefit from the savings and flexibility that a self funded plan can offer. Now these companies have access to monthly claim reports, flexibility and control over one of their largest expenses - their health plan.

Understanding the risks and benefits of a self-funded plan can be complicated and misleading. Let our experience provide Your Solution to Health Benefits.

For more information, or to obtain a quote, contact a Diversified Group Sales Representative at 888-322-2524 today.