As healthcare costs continue to rise, employers are faced with the difficult decision of how to provide quality employee benefits while also managing cost trends. Self-funding allows your company the flexibility to design a plan that fits your needs and the opportunity to take greater control of your healthcare dollars.
With fully insured employee benefit plans, employers pay a predetermined premium for each enrollee on a monthly basis; that premium is paid whether or not enrollees actually receive services. With self-funded plans, an employer applies a pay-as-you-go approach, paying the claims expenses as they are incurred by the enrollees on an established schedule. At Nova we understand the value of this model and guide our clients to achieve maximum savings and improved health outcomes.
There’s more to self-funding than saving on administrative costs. It also offers benefits such as:
Information Management: Comprehensive and transparent utilization data allows you to make informed decisions and plan changes to recognize savings sooner.
Customized Plan Design: Tailored plans to meet your needs allowing for modifications as your employees’ needs change, even outside of your renewal cycle.
Control: Build a consistent plan for employees nationwide avoiding niche requirements based on state mandates.
Cut Costs Without Cutting What’s Important: In a self-funded arrangement, employers have the opportunity to increase benefits while decreasing costs.