Page 3 - The Value of Self-Funding
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Self-funding is an important contributor to the financial and physical health of America’s wellness future. Self-funding
is more than processing claims and receiving premiums, it provides quality coverage and proactive healthcare
management for employers of all sizes and industries.
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Organizations of all types and sizes consider self-insurance as a solution for quality health benefits to their workers
and dependents due to the rising cost of healthcare and increased instability.
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Self-insured group health plans now provide coverage to the majority of U.S. employees and dependents (KFF Survey,
2013).* This has created increased interest and involvement from brokers and consultants in the self-funding option.
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Self-insured health plans are sponsored by thousands of companies, as well as many labor unions and public
sector entities. Some of these companies include:
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Companies today can benefit by being self-funded through:
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Self-funding allows for greater cost containment opportunities. This gives organizations customized plan coverage
featuring the best options to meet the needs of their specific workforce.
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Due to aggregated claims data availability, companies identify and promote healthier employee cultures. This is
traditionally through innovative wellness and disease management experts, who actively engage at the group and
member level.
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Through stop-loss insurance, normally obtained by the plan sponsors, self-funded companies have the security of
a financial backstop should they incur large healthcare claims.
*kff.org/private-insurance/report/2013-employer-health-benefits/
THE FACTS OF
SELF-FUNDING
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Whole Foods
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Microsoft
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Starbucks
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Wells Fargo
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The Home Depot
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Southwest Airlines
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Greater cost containment opportunities
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Ability to customize benefit offerings
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Increase in employer cash flow
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Ownership of claims data
SELF-FUNDING ALLOWS FOR GREATER COST
CONTAINMENT OPPORTUNITIES. THIS GIVES
ORGANIZATIONS CUSTOMIZED PLAN COVERAGE
FEATURING THE BEST OPTIONS TO MEET THE
SPECIFIC NEEDS OF THEIR WORKFORCE.
