For Members of a Local Association, the Answer Is YES!
Every time we talk with fully-insured employer groups about the advantages of Self-Funding, we emphasize that unlike fixed monthly premiums, Self-Funding offers the potential for savings. When claims are at or below anticipated levels, the savings remains with the plan rather than an insurance company. There are risks involved, which is why for all but the largest employers, Stop Loss Insurance is secured to cover claims exceeding actuarially predetermined levels.
For member firms participating in the Maine Energy Marketers Association (MEMA), the 2017 decision to Self-Fund health benefits has been rewarding. For the second time in 3 years, 2020 rates will decrease by 2% and the $300,000 savings the plan realized in 2019 will be given back to members in the form of a December Premium Holiday. Happy Holidays!
While it meets the requirements for Association Health Plans (AHP), the MEMA plan operates much like other self-funded plans. Members have several plan designs to choose from along with easy access to helpful information on cost and quality. Diversified Group provides day-to-day claims analysis and customer service. Cost Plus Pricing with ELAP Services and Direct Primary Care help limit what will be paid for covered benefits.
Diversified Group has helped employers control the cost of health benefits for more than 50 years and our partnership with MEMA and The Allumbaugh Agency is an example we are very proud of. To learn more about Self-Funding, give us a call at your convenience.