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Group Health Insurance has proven to be one of the most dynamic but costly employee benefits offered within the worksite. Many employers have sponsored a Health Insurance program for their employees only to find within a few short years that it has become too costly to continue or they must cot back the benefit level sharply. This usually leads to morale problems for both employees and employer alike. Self and Shared Funding is becoming more and more popular because of this situation. The premise behind the Self and Shared Funding is that, statistically, it is more costly to insure for health care needs than it is to just pay for them on an as needed basis. When I say statistically I mean that there have been studies done on a large pool of individuals and groups and the cost was weighed of insurance premiums vs. just paying for the services needed and the cost of insuring is considerably higher. However, most employers and/or individuals do not possess the assets necessary to pay that large hospital or surgical service needed due to a sickness or accident that does occur from time to time. Hence, the Shared Funding program was developed. Shared Funding combines inexpensive basic Health Insurance for major medical expenses with employer sponsored funding for routine outpatient care. The result is an affordable health plan that competes with most costly and benefit rich plans available for both small and large groups. Because the basic Health Insurance carrier is taking the majority of risk for the large claims like hospitalization, maternity, cancer treatment, and surgical procedures, the risk to the employer and employee for outpatient services is very limited. These services can then be funded with the savings in premium and usually have on average 25% less cost than a conventional fully insured Health Insurance plan. Request a Self/Shared Funding Quote. Note: Please be aware that these are not the only Insurance situations that may affect you and you should always inquire for information from a Licensed Insurance Agent. This website is for informational purposes only and it is not intended to replace a Licensed Insurance Agent or to offer legal advice of any kind.
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