To deal with rising healthcare costs, it’s important that employers explore alternative, creative solutions. One option that may fall into that category is partially self-funding the employee benefits program.
Depending on your company’s makeup, needs, and goals, there are a few potential reasons and benefits why self-funding might work for you. Here are four of them:
- Small and mid-sized employers might want to avoid risk charges and state premium taxes
- Large employers may want to more control over the administration of their benefit plans. They also may want to increase their cash flow by holding reserves in an interest-bearing account
- Multi-state employers might may want to greatly reduce the complexities and burdens of complying with the insurance regulations of multiple states
- Employers of young, healthy workforces may be looking to save on health insurance by taking advantage of their advantages
Of course, there are many other reasons why your company may want to review whether self-funding employee benefits is the right decision for you.
For additional insight and guidance on self-funding, please contact our team at 781-759-1222 or at info@CBGBenefits.com.