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April 15, 2020

It’s Time for a Silver Lining

Blog photo – April

You have endured health benefit premium increases for years. And now, the fully insured market is teeing up massive rate increases for 2020. You may have furloughed staff, reduced pay, and invested in technology for your now-remote workforce. How much more can you take?

There is a silver lining. We have all witnessed the amazing togetherness and resilience of healthcare workers, essential retailers, delivery service providers and friends. We have all found innovative new ways to do old inefficient tasks. Without effort we have discovered which meetings, tasks, and programs were not critical to the business- they all just stopped.

Another change driving newfound value for many businesses is their recognition of how health care is being provided and purchased. Now is the time to get ahead of the curve and take back control of your health benefit spend. Avoid the cycle of annual rate increases. Sixty-one percent of covered workers are now enrolled in self-funded plans that deliver value in how employees access and pay for their health care. Why? It’s a better alternative that empowers businesses and saves money. If you never considered a self-funded insurance program because you thought you were too small or had too much risk, take this quick assessment to see if group self-funded insurance can in fact save you money.

Self-funded, Group Insurance Cost Savings Assessment

You may be wondering how this works. How can the traditional insurance companies continue to raise rates while what seems to be the riskier solution offers more stability and ultimately reduces your costs?

Fully insured carriers underwrite or price premium to recover claims or losses they have already experienced. Roundstone’s self-funded captive doesn’t. We project your future or anticipated claims and you keep what you don’t spend.

Here is a quick video to help explain.

Your health benefits plan may not be up for renewal yet, but don’t wait until it’s too late to be strategic. Choose a plan now that is best for your organization in the long term. How do you even start that process? Here are some things you can start thinking about now to get ahead of your renewal.

  • Get informed! What are you spending on a per employee and gross basis? What do you know about your organization’s claims?
  • How has your current culture of wellbeing impacted the costs of your benefits program?
  • What is on your wish list that you don’t think you can afford right now (telemedicine, specialty drug cost savings, lower deductibles), and what are your “must-haves”?
  • What would you change about your current plan if you had the opportunity?
  • Have you scheduled a quarterly review with your Benefits Advisor? Ask your advisor about a self-funded option.

We believe your best option to avoid the COVID-19 price increase that is very likely coming from the fully insured market is to consider a self-funded group insurance program, but you need to evaluate that for yourself and with your Advisor.  Contact Roundstone for more information about how this can work for you, and how we can help.

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