Did you know that 60 percent of small business employees spend less than $1,500 a year on health care?2 And many times it’s for minor bumps and bruises or the occasional sick visit. And even still, since these are relatively low cost visits, most employees end up paying out of pocket because they’re not meeting their deductible.
So most of these employers are paying more to the insurance company in premiums than are being paid in claims. Would you like a chance to get some of that premium that’s not used refunded? Now you can with a self-funded medical plan.
Don’t be scared off by the label. As an employer, you will not be stuck with paying excess claims. Your premium is the maximum liability that you will pay each year. Just like with your current traditional plan.
One of the reasons these plans can have lower overall premiums is because they are not subject to all of the state mandates, and you’ll have the chance to get money back at the end of the year.
If you are losing your grandmothered plan this year in Tennessee and have at least 5 employees, a self-funded option is something you should consider.
At www.grouphealthtn.com, we have been helping small employers in TN for 20 years craft their insurance plans so that they are as efficient as possible. Call us at 615-376-8899 and we will offer a no obligation consultation on your small group’s health insurance plan
2Based on a national sample of UnitedHealthcare small business claims data for fully insured plans from March 1, 2010 to February 28, 2011.