Surviving ACA: Self Funding Through Balanced Funding

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This blog post is a supplement to our webinar on self-funding.  If you would like more information about self-funding from our presenter you can contact them by clicking here.

One of the largest concerns for a smaller employer considering self-funding is how to pay for all of the claims, premium, fees, etc.  To an employer comfortable with the simplicity of a fully insured product making the move to self-funding can be put off despite the cost savings.  Insurance carriers are making the move to self-funding easier for these employers by offering balanced funding options.

In balanced funding, the maximum self-funding costs for the year are determined and billed up front in twelve monthly installments.  This allows the company to budget monthly on the worst-case scenario.  If claims are greater than projected, the costs do not exceed the up front maximum.  In addition, the carrier provides claims reports to show the employer how the program is working.

In addition, if the actual claims are less than the total paid by the employer after the run out feature the employer could receive a refund of the difference.  Unfortunately, this is not the case with all products, but AUI can help you find the right balanced funding product to fit your needs.

If you would like for information about balanced funding or to find out if your organization is a candidate for self-funding, please contact us by clicking here.

2019-03-07T20:31:22-05:00