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What
is Partial Self-Insurance? An
organization which chooses to partially self-insure assumes the
risks as well as the rewards associated with the benefit plans
provided to their employees. The cost savings over fully
insured programs can be remarkable when you control the
administration of the benefit plans. Partially
self-insured plans are different from fully-insured plans in that with a
fully-insured product, you pay premiums to an insurance company in
order to transfer the risk to the insurance company.
Unfortunately, along with the risk goes the control and potential
rewards associated with your health care plan. Savings that
could be realized by your organization are transferred to the
insurance company in the form of substantial profit. In self-insurance,
your risk can be minimized by purchasing 'reinsurance' coverage that
picks up the responsibility for claims at a designated level.
Premiums for this type of coverage are substantially less than in a
fully insured program. To
gain a clear understanding of whether this trade-off is in the best
interest of your organization, you must first understand the risks
associated with different benefit plans. Who
Should Partially Insure? Basically
any employer with 50 or more employees should look at partial
self-insurance. Please call us today at 1-800-331-7620 or
(330) 726-5800 Ext. 101 in order for a Free, No-Risk assessment as
to whether or not Partial Self-Insurance is right for you!
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