When it comes to finding the best insurance package for your business, there are several ways to go about the process. Group health insurance can make things even more complicated, as each employee in your business will have unique needs and associated risks. While standard policies might seem like the best fit, it can also be advantageous to pursue alternatives to the norm. One big decision to weigh out is whether or not you’re using fully-funded or self-funded insurance. Each offers key benefits that you will want to learn more about before making a final decision.
The Main Differences in Funding
Determining whether fully vs. self-funded health plans are right for you requires a bit of time. With a self-funded plan, the employers are responsible for creating and maintaining their own health plans. There are both fixed and variable costs involved in this type of plan, which will depend on your specific organization. A fully-funded plan, on the other hand, is sponsored by the employer. The company pays a fixed premium rate to the carrier and will depend on the enrollment numbers for the plan. The main points to focus on when making your decision are:
- Cost of each plan option
- Number of employees in your establishment
- Control and personalization of package
Policies Based Around Company Needs
While there are many considerations to take with your insurance package, a little research can point you in the right direction. Weigh out your options and find a path that makes the most sense for your business.