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Health Self-insurance
Benefits & Compensation
Health Self-insurance
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Does anyone have any thoughts/opinions on companies utilizing self-insurance with respect to health? Are there any good resources out there on this option?
Also, the owner of my company is interest
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Forums » Topic Forums » Benefits & Compensation » Health Self-insurance
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Health Self-insurance
posted at 12/20/2000 5:13 AM EST
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Posts: 191
First: 7/27/2000 Last: 9/12/2005 |
Does anyone have any thoughts/opinions on companies utilizing self-insurance with respect to health? Are there any good resources out there on this option?
Also, the owner of my company is interested in giving employees money through the cafeteria plan to buy individual health insurance policies rather than having a group plan. Any experience with this? Thanks! |
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Health Self-insurance
posted at 12/22/2000 2:15 PM EST
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Posts: 18
First: 12/22/2000 Last: 3/2/2010 |
Sure TC. I am an employee benefits consultant/broker in NJ. There are several questions that need to be addressed before considering being self-insured. For instance, Do you have enough employees to spread the risk across? Typically 100 or more is a goal depending on the average age and demographics of the group. Does your company have the funds to pay a large claim if one were to hit towards the end of the contract period? If an employee were to develope an illness that would require an expensive surgery or ongoing treatment that would extend past the renewal of the Self-insurance, could your company fund such a claim. Most likely, these claims would be excluded from the stop-loss insurance thereby falling solely on the hands of the employer. Can you get claims experience from your current carrier to determine if it makes sense to be self-insured. Maybe its financially more sound to be fully-insured. You should really check with your broker who should investigate these things for you. I would hope that your broker is on top of things and should have already prepared a report for you with the pluses and minuses of persuing this type of risk.
These are just a few questions you should address. If you need more help let me know. |
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Health Self-insurance
posted at 12/22/2000 3:29 PM EST
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Posts: 2442
First: 2/12/2000 Last: 9/14/2011 |
The insurance broker who responded is on the right track with regard to the things you should consided with regard to self insurance.
Giving employees money to buy health insurance can be a problem. What if the employee or one of the dependents is not insurable at any cost? In a group plan everyone is covered no matter their pre existing problems. |
Forums » Topic Forums » Benefits & Compensation » Health Self-insurance
