Alternately funded health and dental plans are proving to be very effective tools for employers to use to help control costs. These plans are usually called self-insured plans. In reality, "self-insurance" is a misnomer. Virtually all of these arrangements are protected with a "stop-loss" insurance (or re-insurance) policy. The intent is to put the employer in control of their health plan design and implementation.

Traditional indemnity and HMO arrangements require the employer to have dollars for claims available before there are any claims. Our program allows the employer to keep the dollars set aside in his own account and then pay claims as they arise.

Typically our arrangements bring additional benefits, such as lower administrative costs, elimination of reserve requirements, and enhanced claims control and processing. These benefits have proven to be attainable across a broad base of employers. In fact by 2000 over 6 out of 10 employees in the USA were insured via alternately funded plans and that number is growing annually.

In order to consider an alternately funded arrangement, and employer needs to have at least 50 employees. In many situations, the employer should also consider reducing the number of options available in order to gain the enrollment needed for a successful plan.

Larger employers may wish to have a phased in approach. We accomplish this by initially providing a prescription drugs program, then adding the dental plan, and finally adding the health plan option(s). This works out well because prescription drugs are the fastest growing portion of all health plans and, therefore, usually provide the most immediate savings.

To find out more about the benefits of an alternately funded program in your enterprise, you may reach us by choosing the Contacts page.

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