Central PA Benefit Solutions LLC can help you make educated (and cost-saving!) benefit plan decisions. We can analyze and benchmark your claims data, model potential plan designs, estimate renewal costs and enhance employee decision-making – all designed to provide you with a cost-effective benefits plan tailored to your unique business and employee population

Self-insurance

A growing number of U.S. employers are making the switch to self-insuring as a way to reduce costs and improve service. Self-insuring or self-funding is not right for every organization. Employers considering a switch from fully-funded to self-funded health plans should analyze the advantages and disadvantages before making the switch. Central PA Benefit Solutions LLC can help you weigh the pros and cons of such plans, and help you decide if self-insurance is the right cSavehoice for your firm’s health care benefits.

In practical terms, self-insured employers pay for medical claims as they are incurred instead of paying a fixed premium to an insurance carrier, which is known as a fully-insured plan. Employers can be partially or fully self-insured. Employers that choose to partially self-fund, may decide, for example, to continue third-party coverage of mental health or prescription benefits, but self-fund all other medical claims.

Advantages of self-insurance

  1. Reduced insurance overhead costs.
  2. Reduced state premium taxes.
  3. Avoidance of state-mandated benefits
  4. Employer control.
  5. Employers can see improved cash flow since they do not have to pre-pay for coverage.
  6. Choice of claim administrator. An insured policy can be administered only by the insurance carrier. A self-insured plan can be administered by the company, an insurance company or independent third-party administrator (TPA), which gives the employer greater choice and flexibility.