Self Insurance

Employers Can Save up to 14% on Health Care Costs. Let PreferredOne Guide Your Plan into Renewed Savings.

Self-funded insurance can mean significant savings for your company, but employers often overlook this affordable health care coverage option due to:

  • Lack of clarity about the risks involved

  • A general sense your business is not big enough

  • Fear about the difficulty in switching plans

Self Insurance is Gaining Popularity

The Affordable Care Act places additional pressures on managing the cost of fully-insured plans. Additional taxes, fees and assessments along with benefit mandates create an environment that encourages the transition to self insurance. Self funding, once the exclusivity of sprawling multi-nationals, is becoming more and more common. In fact, smaller companies are seeking self insurance as a solution to escalating health care benefit cost.

Where do savings come from?

Traditional fully-insured health benefit programs incur a number of expenses that add to your cost and budget. Our experience with administering plans help us locate areas we can:

  • Eliminate fully-insured taxes and assessments

    Eliminate the current fully-insured taxes and assessments of 3-6% of premium and avoid the Health Reform Insurance Industry Tax

  • Avoid additional cost

    Fully-insured plans typically charge risk and contingency fees of approximately 2-4%

    Administrative and network management fees are generally higher under fully-insured plans, typically 2-4%

  • Improve cash flow

    Self-funded health care plans have better cash flow as the company holds and invests reserves 0.5-2%

Why PreferredOne Self Insurance?

  • Modest Administration Fees

  • Administrative and Benefit Design Flexibility

  • Multiple Stop-Loss Carriers, Including A+ A.M. Best Rated

  • Expect Transparent Financials and Clear Communication

  • Competitive Network Discounts and Flexible Provider Access

  • Uncompromising Service

PreferredOne Simplicity™

Now small and medium sized employers hav another option in employee health benefits. Companies with over 25 employees can consider self insurance without the rick. Learn More

for details or a proposal, contact your broker or PreferredOne (763-847-4007/Self.Insurance@PreferredOne.com)