Prior to the Affordable Care Act, the concept of self-funding a company’s health insurance plan had been reserved mainly for employers that could spread the risk over a large population of employees and dependents. However, in this post Obamacare world, more and more small and medium sized employers are turning to alternative funding mechanisms in order to control costs. Numerous carriers have created unique programs to help these employers bridge the gab between the volatility of the direct, fully insured market and the risk associated with self-funding. Level or balanced funding presents employers with a creative way to control their costs in a manner that they previously could not. By engaging and educating their employees, companies can create a more well informed consumer of healthcare as well as a healthier and more productive workforce. The indirect financial benefits can be less turnover, increased productivity, and less paid time away. Moreover, these employers can maintain a more stable benefits offering by directly impacting the claims costs associated with their health plan.
