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Control Your Company’s Healthcare Costs With A Self-Funded Program

This is a great article that really explains the concept and thought process behind my Major Medical solution.
It’s about changing employer’s mindset from being a buyer of health insurance to being a consumer of health insurance.   Its just not thinking about this years rate increase but what health insurance will cost in 10 years and how to control the cost with factual data, transparency, and cost controlling tools that will allow you to achieve your goals.
Great points from the article:
  • “With any major purchase by a well-run business, a process is followed that includes, at a minimum, finding out the cost, the suitability or adaptability of the product to the business and an estimate of ongoing expenses related to the product. “
  •   Unfortunately, most middle-market businesses are not following these basic purchasing rules when it comes to funding their employees’ health benefits expense.
  • Traditional health insurance proposals do not include adequate information on what’s behind the premium cost, offer little to no control over the product’s application to the particular business and provide no estimate of where costs are going. A resolution or commitment to change this is required for businesses looking to curtail the ever-increasing cost of their health insurance.
  • Self-funding with a medical captive insurance product offers this opportunity. A medical captive is a pool of small to midsized employers who are sharing the risk of their medical insurance by hosting their own self-insured group, thus improving transparency, control and cost savings.
  • An old adage states that unsuccessful businesses make decisions based on their current predicament. Successful businesses, however, make decisions based on where they want to be long-term. Recognizing this, a resolution to approach the funding of employee health benefits with a long-term perspective is recommended. Too often, businesses look at their health insurance choice once a year. The decision is presented as a twelve-month fixed cost.
  • Without a long-term approach, the business is held hostage to an annual auction where one double-digit premium increase is presented with four others. The self-funded medical captive introduces an alternative and delivers a long-term health insurance solution to the middle market business.


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