With the cost of healthcare continually rising, employers are seeking ways to cut the cost of employee benefits. As a result, many employers are considering self-funding for the first time. Self-funding can offer employers some benefits that fully-insured plans simply cannot. For employers looking into self-funding, they need to be able to offer their employees a network and other benefits that rival fully-insured plans. That’s where HPS comes in. This blog post will explore the details and benefits of self-funding, as well as the role that we at HPS play.
How Employers Benefit From Self-funding
One of the benefits of self-funding is increased control and opportunity for cost savings in the following areas, and working with HPS offers additional benefits. Benefits of self-funding include:
- Ability to select any plan design—This allows employers to design plans that meet their needs, rather than simply having to choose from what an insurance company offers. Employers can choose their provider network based on what their employees need.
- Access to utilization reports—Employers can review the data in reports to adjust the design and cost of the plan year-to-year and to create a multi-year benefits strategy.
- Greater control over cash flow—Employers pay claims as they come in, from a separate account set aside for this purpose, allowing them to know exactly how much is being spent on claims and when.
- Direct benefit from wellness initiatives—Rather than the carrier benefiting from reduced claims costs as a result of employee wellness programs, the employer is the one who sees this benefit.
- Cost savings—Employers save on premium taxes, ACA-related taxes and fees and administrative costs. While self-funded plans still incur some administrative fees (TPAs, stop-loss coverage, etc.), the fees are far lower than for fully-insured plans.
Benefits of Using HPS
When choosing self-funding, it’s important to find a good provider network. HPS is different than other provider networks in many ways that will benefit employers and employees alike, including:
- SuperEOB and bundled payments—An easy-to read statement that consolidates all of an individual’s or a family’s in-network explanations of benefits (EOBs) and medical bills for an entire month, regardless of how many doctors were seen. This single statement experience takes the guesswork and waiting out of paying for medical costs, as the consumer sees just one number they need to pay
- Strength of network and more—In addition to having a strong network, HPS is always adding providers and giving those providers more focus than national networks, trying to lower costs in a variety of ways. When we partner with a provider, we go beyond negotiating discounts and rates—we also take responsibility for patient billing and collections, allowing providers to focus on patient care
- Continued value—HPS helps you as the broker help your clients, through breadth of network and extremely effective contracts, as well as focusing on the employer’s needs first. While at first glance, national networks may appear to have higher discount percentages, the medical cost per employee matters more than the percentage discount; help your clients look beneath the surface to understand that costs are more than just a percentage discount.
Don’t just talk to your clients about self-funding, talk to them about how HPS can save them money. HPS will strengthen your relationship with your clients, through the strength of its network, the SuperEOB and more.
While self-funding does come with some additional risks, stop-loss insurance exists to reduce that risk, and employers can benefit from self-funded plans in ways they can’t from fully-insured plans. Contact us for more information and for help talking to your clients about the benefits of working with HPS.