Now that the affordable healthcare act (aka Obamacare) has been around for several years, we have been noticing that although there have been additional Americans able to secure health coverage, there have not been any reports of reduced costs. On the contrary! Premium contributions and deductibles, copays and coinsurance amounts have increased tremendously. How can small business choose a plan that controls costs and keeps benefits affordable?
Smaller employers have always had the option to look at Self-Funding, but there has been little or no media attention on Obamacare alternatives. But there ARE alternatives—one of which is Self-Funding. Because of the passage of the ACA, there are many advantages to Self-Funding:
- Self-Funded plans do not have “Community Rating”
- Self-Funded plans do not have to provide “Guarantee Issue” coverage
- Self-Funded plans do not have 3:1 rate compression rules
- Self-Funded plans do not have MLR rules
- Self-Funded plans are not subject to some taxes/fees
- Self-Funded plans are subject to ERISA (toughest consumer protection laws anywhere)
- No “double dealing”
- Disclosure of commissions and fees
These items make Self-Funding a very viable Obamacare Option. It has opened doors for employers not usually considered candidates for Self-Funding due to group size to explore this new Obamacare Option. There are new Risk Management services and products designed especially for smaller employers, allowing them to not only plan and budget, but also to take advantage of having a healthy workforce and the implementation of wellness incentives.
USA Business Choice was founded exclusively for Smaller Employers and their entry into the Self-Funded world. We have built products for the Small Group market to work with the educated broker.
If you have any other questions on this or any other topic relating to funding health insurance, let us know!
USA Business Choice: Built for Small Business, Forged by Choice!