Self-funding gives employers the advantages of cost savings, control and choice. But switching to self-funding can seem like a daunting task.
So The Alliance, along with some outstanding partners, made it easier than ever by creating a package of services for employers who are self-funding for the first time.
The result is Single Source Self-Funding™, which is designed to give employers an efficient and effective way to transition from fully insuring employee benefits to self-funding.
How it Works
Single Source Self-Funding makes it easier for employers to start self-funding by doing the preliminary legwork for you.
We used a request-for-proposal (RFP) process to identify and then partner with all the stakeholders in a self-funded arrangement: third-party administrator (TPA), pharmacy benefits manager (PBM) and stop-loss carrier.
Single Source Self-Funding also gives you:
- The Alliance provider network for broad access to doctors and hospitals at significant discounts.
- A blueprint for the self-funding transition.
- A dedicated implementation team.
Why Employers Self-Fund
Single Source Self-Funding gives you access to the self-funded approach that large employers are already using to capture savings. Roughly four out of five employers with 500 or more employees have already adopted self-funding.
These large employers know that self-insured health plans typically spend less than fully-insured plans to provide health benefits. For example, the 2017 Marketplace Realities Report from Willis Towers Watson forecasts rate increases of 4.5 percent to 5.5 percent for self-insured plans, which compares to 7.2 percent to 8.2 percent for fully-insured plans.
Expected Cost Increases for Self-Funded and Fully-Insured Plans
While savings vary, Alliance members typically show a pattern of lower medical trend in year-to-year comparisons. The end result is a better bottom line.
Making Sure It’s the Right Decision
Of course, self-funding is not the right choice for every organization. At The Alliance, we are firmly committed to helping employers and their brokers make decisions based on what’s right for your organization and your employees.
If you decide to move forward, you’ll find that self-funding creates a way to buy health care differently. When you self-fund, you can:
- Adjust your plan design to your goals.
- Access your data so you can analyze it to find new ways to save.
- Use payment strategies aimed at increasing health care value.
- Take advantage of innovative approaches such as The Alliance’s QualityPath® program that guides patients to high-quality care for certain surgeries and tests.
Why Brokers Are Certified to Offer Single Source Self-Funding
Only certified brokers can access Single Source Self-Funding for their clients. Certification is designed to align the broker’s expertise with the advantages of this self-funding product and how it can help employers achieve their benefit goals.
Certification is focused on courses that carry continuing education (CE) credits. Learn more about the two courses that are required for certification through 2018.
Contact Us or Your Broker to Learn More
Are you ready to learn whether self-funding could be the right choice for your organization? Contact your broker or contact me directly at 800.223.4139 x6638 or firstname.lastname@example.org.
Otto-McLeod manages Single Source Self-FundingTM, the QualityPath® initiative and other programs. Her role also includes researching and developing new products and services that support the mission of The Alliance.
Before joining The Alliance in December 2014, Otto-McLeod was director of sales, product development and marketing communications at WEA Trust. Earlier positions include director of health care initiatives at THRIVE; manager of group retention at Dean Health Insurance; and manager of group services at Physicians Plus Insurance Corp.
Otto-McLeod has an executive master of business administration degree from UW-Madison and a bachelor’s degree in business administration from Cardinal Stritch University. She is a certified employee benefits specialist (CEBS) and holds licenses in health and life insurance.
Latest posts by Kathryn Otto-McLeod
- The Simple Way to Start Self-Funding - July 24, 2017