Contact Information: Contact: Henry Stimpson Stimpson Communications 508-647-0705 Henry@StimpsonCommunications.com
Self-Funding Health Insurance Can Work for Even Small Employers, Edholm Writes in Employee Benefit News
| Source: Business Benefits Insurance
ANDOVER, MA--(Marketwire - June 25, 2008) - Switching from traditional health insurance to
"self-funding" raises many concerns for employers. Considered risky by
some, this move can make key decision-makers hesitant.
In his article, "Ask These 14 Questions Before Self-funding Your Health
Insurance Plan," in a recent edition of Employee Benefit News, benefits
expert Jim Edholm addresses this anxiety and explains how self-funding your
health insurance can benefit your business.
Edholm says, "It's no secret that higher deductibles on other insurance
products can reduce your fixed costs... will it work for health insurance,
too? The answer is, yes, you can potentially profit from self-funding, but
be sure to look before you leap."
With partial self-funding, "You're not going to pay all your company's
health claims. Rather, you partner with an insurer: you pay the small,
frequent claims and the carrier pays the larger, infrequent and
unaffordable claims."
Edholm covers who should consider self-funding, and the characteristics
that make for a good match. His 14 questions let readers perform a
self-assessment.
He lays out the main factors that contribute to the unpredictability of
employee health. "Self-funding is different, and you have to familiarize
yourself with new terms and risks... However, if your broker knows his or
her self-funding 'stuff' it's no more complicated than traditional
insurance."
"Properly planned for and using a knowledgeable broker, self-funding can
work for companies of surprisingly small size," he concludes. "Evaluate
your alternatives carefully -- this is a tool you shouldn't ignore."
The full article can be read online at http://tinyurl.com/4pv49j.
Edholm is president of Business Benefits Insurance (BBI), an employee
benefits planning firm in Andover, Mass. He has worked with employers for
more than 25 years and can be contacted at (978) 474-4730, via his website
www.Group-Insurance-Guide.com or via e-mail jedholm@bbibenefits.com