Check out this great video
Have you heard the terminology “Self Funding” and had no idea what is being talked about?
Self funding is a leading option for companies who are struggling with the rising costs of healthcare, which is also known as self-insured insurance. Independent studies have shown that self-funding can cost as much as 40% less than comparable coverage via insurance companies. In addition, TPA's offer a cost-effective outsourcing solution to the administrative services associated with a self-funded plan.
In self-funded health plans the employer takes on the financial risk of the plan. The company pays out-of-pocket for their employees healthcare expenses as they are incurred. It differs from fully-insured health plans where the employer pays the insurance carrier a pre-determined premium and in return the carrier pays for the healthcare expenses. With a self funded plan, the employer relies on a TPA to process claims on their behalf, which is what BRMS does for its clients.
It is important to note that self-insuring exposes the company to much larger risk in the event that more claims than expected must be paid. With a self-funded health plan there are two main costs that need to be considered: fixed costs and variable costs.
Self funding also has a lot of benefits that can outweigh the risks, including: a customizable & flexible plan design to meet the needs of your workforce, an effective long term solution for employers who want to offer a stable employee benefit plan, improved cash flow due to not having to pre-pay for coverage, and lower tax because self-funded plans are not subject to state health insurance premium taxes.
We can provide you with full service claims administration, plan design & consultation, risk assessment & insurance underwriting, medical management, utilization review, data warehousing & reporting, PPO network management, and much more!