By Michael Jordan, MagnaCare
Self-insurance has become an essential cost-control strategy for a number of large plan sponsors. Today, a growing number of small and midsize plan sponsors also recognize the opportunity to rein in staggering health coverage costs by switching from a fully funded plan to a self-insured plan.
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A self-insured plan can provide significant cost savings and maximum control over the plan design. The key is to access utilization data to gain a comprehensive picture of a workforce’s health behavior. Combined with population health programs that encourage healthy behaviors, this strategy benefits both plan sponsors and members.
HR representatives can communicate the many advantages of self-insurance and play a role in helping the employer tailor benefits around the unique needs of its workforce, improve employee health and wellness, and ensure long-term sustainability.