Historically, employers have turned to SELF FUNDING their health plans when traditional insurance programs failed to meet their cost expectations.
In simple terms, the employer pays for claims out-of-pocket as they are presented instead of paying a predetermined premium to an insurance carrier for a fully insured plan. Thousands of employers using a SELF-FUNDED strategy have discovered significant advantages such as:
- Elimination of most premium tax
- Lower cost of administration
- Cash flow benefit
- Coverage flexibility
- Client specific plan administration
- Detailed analysis of each claim and the dollars associated with such
- Forecasting and predictability
- Financial reward when the plan and participants perform well in a given plan year (spend less than expected)
- Carrier profits and risk charges are avoided
- Integrated networks and better coordination of care (especially with a SALERNO HEALTH or other DPCMH model of delivery)
- Federal (e.g. ERISA) mandates apply rather than state regulations
SELF-FUNDING is one of the most effective ways employers can control the rising costs of health coverage. Stop-loss insurance is purchased to further limit financial exposure and reduce risk.
SALERNO HEALTH works perfectly within a SELF-INSURED plan designed around your needs for a comprehensive yet affordable healthcare plan. The three tiered approach including Salerno with a PPO In-network and out-of-network provides the most cost effective care available anywhere.